Correlation Between Hays Plc and GFL ENVIRONM
Can any of the company-specific risk be diversified away by investing in both Hays Plc and GFL ENVIRONM at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hays Plc and GFL ENVIRONM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hays plc and GFL ENVIRONM, you can compare the effects of market volatilities on Hays Plc and GFL ENVIRONM and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hays Plc with a short position of GFL ENVIRONM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hays Plc and GFL ENVIRONM.
Diversification Opportunities for Hays Plc and GFL ENVIRONM
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hays and GFL is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hays plc and GFL ENVIRONM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFL ENVIRONM and Hays Plc is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hays plc are associated (or correlated) with GFL ENVIRONM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFL ENVIRONM has no effect on the direction of Hays Plc i.e., Hays Plc and GFL ENVIRONM go up and down completely randomly.
Pair Corralation between Hays Plc and GFL ENVIRONM
Assuming the 90 days horizon Hays plc is expected to under-perform the GFL ENVIRONM. In addition to that, Hays Plc is 1.43 times more volatile than GFL ENVIRONM. It trades about -0.01 of its total potential returns per unit of risk. GFL ENVIRONM is currently generating about 0.06 per unit of volatility. If you would invest 2,691 in GFL ENVIRONM on September 3, 2024 and sell it today you would earn a total of 1,709 from holding GFL ENVIRONM or generate 63.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hays plc vs. GFL ENVIRONM
Performance |
| Timeline |
| Hays plc |
| GFL ENVIRONM |
Hays Plc and GFL ENVIRONM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hays Plc and GFL ENVIRONM
The main advantage of trading using opposite Hays Plc and GFL ENVIRONM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hays Plc position performs unexpectedly, GFL ENVIRONM can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GFL ENVIRONM will offset losses from the drop in GFL ENVIRONM's long position.| Hays Plc vs. Entravision Communications | Hays Plc vs. United Breweries Co | Hays Plc vs. Monster Beverage Corp | Hays Plc vs. National Beverage Corp |
| GFL ENVIRONM vs. TIANDE CHEMICAL | GFL ENVIRONM vs. PennyMac Mortgage Investment | GFL ENVIRONM vs. KINGBOARD CHEMICAL | GFL ENVIRONM vs. SEI INVESTMENTS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |