Correlation Between LiCycle Holdings and Heritage-Crystal
Can any of the company-specific risk be diversified away by investing in both LiCycle Holdings and Heritage-Crystal 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 LiCycle Holdings and Heritage-Crystal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LiCycle Holdings Corp and Heritage Crystal Clean, you can compare the effects of market volatilities on LiCycle Holdings and Heritage-Crystal 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 LiCycle Holdings with a short position of Heritage-Crystal. Check out your portfolio center. Please also check ongoing floating volatility patterns of LiCycle Holdings and Heritage-Crystal.
Diversification Opportunities for LiCycle Holdings and Heritage-Crystal
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LiCycle and Heritage-Crystal is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding LiCycle Holdings Corp and Heritage Crystal Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heritage Crystal Clean and LiCycle Holdings 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 LiCycle Holdings Corp are associated (or correlated) with Heritage-Crystal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heritage Crystal Clean has no effect on the direction of LiCycle Holdings i.e., LiCycle Holdings and Heritage-Crystal go up and down completely randomly.
Pair Corralation between LiCycle Holdings and Heritage-Crystal
If you would invest 227.00 in LiCycle Holdings Corp on August 24, 2024 and sell it today you would lose (19.00) from holding LiCycle Holdings Corp or give up 8.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
LiCycle Holdings Corp vs. Heritage Crystal Clean
Performance |
| Timeline |
| LiCycle Holdings Corp |
| Heritage Crystal Clean |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LiCycle Holdings and Heritage-Crystal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LiCycle Holdings and Heritage-Crystal
The main advantage of trading using opposite LiCycle Holdings and Heritage-Crystal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LiCycle Holdings position performs unexpectedly, Heritage-Crystal 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 Heritage-Crystal will offset losses from the drop in Heritage-Crystal's long position.| LiCycle Holdings vs. Casella Waste Systems | LiCycle Holdings vs. Perma Fix Environmental Svcs | LiCycle Holdings vs. Montrose Environmental Grp | LiCycle Holdings vs. LanzaTech Global |
| Heritage-Crystal vs. Casella Waste Systems | Heritage-Crystal vs. Montrose Environmental Grp | Heritage-Crystal vs. Clean Harbors | Heritage-Crystal vs. Waste Connections |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |