Correlation Between Pro Dex and Gfl Environmental
Can any of the company-specific risk be diversified away by investing in both Pro Dex 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 Pro Dex and Gfl Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Dex and Gfl Environmental Holdings, you can compare the effects of market volatilities on Pro Dex 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 Pro Dex with a short position of Gfl Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Dex and Gfl Environmental.
Diversification Opportunities for Pro Dex and Gfl Environmental
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pro and Gfl is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pro Dex and Gfl Environmental Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gfl Environmental and Pro Dex 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 Pro Dex 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 Pro Dex i.e., Pro Dex and Gfl Environmental go up and down completely randomly.
Pair Corralation between Pro Dex and Gfl Environmental
Given the investment horizon of 90 days Pro Dex is expected to generate 1.75 times more return on investment than Gfl Environmental. However, Pro Dex is 1.75 times more volatile than Gfl Environmental Holdings. It trades about 0.08 of its potential returns per unit of risk. Gfl Environmental Holdings is currently generating about 0.06 per unit of risk. If you would invest 1,668 in Pro Dex on August 23, 2024 and sell it today you would earn a total of 2,565 from holding Pro Dex or generate 153.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Pro Dex vs. Gfl Environmental Holdings
Performance |
| Timeline |
| Pro Dex |
| Gfl Environmental |
Pro Dex and Gfl Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Dex and Gfl Environmental
The main advantage of trading using opposite Pro Dex and Gfl Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Dex 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.| Pro Dex vs. Coloplast A | Pro Dex vs. Straumann Holding AG | Pro Dex vs. Nephros | Pro Dex vs. InfuSystems Holdings |
| Gfl Environmental vs. Pro Dex | Gfl Environmental vs. Pure Cycle | Gfl Environmental vs. Quest Resource Holding | Gfl Environmental vs. ABIVAX Socit Anonyme |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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