Correlation Between Magnite and GFL Environmental
Can any of the company-specific risk be diversified away by investing in both Magnite and GFL Environmental 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 Magnite and GFL Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnite and GFL Environmental, you can compare the effects of market volatilities on Magnite and GFL Environmental 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 Magnite with a short position of GFL Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and GFL Environmental.
Diversification Opportunities for Magnite and GFL Environmental
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnite and GFL is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and GFL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFL Environmental and Magnite 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 Magnite are associated (or correlated) with GFL Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFL Environmental has no effect on the direction of Magnite i.e., Magnite and GFL Environmental go up and down completely randomly.
Pair Corralation between Magnite and GFL Environmental
If you would invest 1,310 in Magnite on November 3, 2024 and sell it today you would earn a total of 410.00 from holding Magnite or generate 31.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Magnite vs. GFL Environmental
Performance |
| Timeline |
| Magnite |
| GFL Environmental |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magnite and GFL Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnite and GFL Environmental
The main advantage of trading using opposite Magnite and GFL Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite position performs unexpectedly, GFL Environmental 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 Environmental will offset losses from the drop in GFL Environmental's long position.| Magnite vs. Deluxe | Magnite vs. Clear Channel Outdoor | Magnite vs. Entravision Communications | Magnite vs. Innovid Corp |
| GFL Environmental vs. Acumen Pharmaceuticals | GFL Environmental vs. Toronto Dominion Bank | GFL Environmental vs. Shenzhen Investment Holdings | GFL Environmental vs. Valneva SE ADR |
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.
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