Correlation Between Susglobal Energy and Clean Harbors
Can any of the company-specific risk be diversified away by investing in both Susglobal Energy and Clean Harbors 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 Susglobal Energy and Clean Harbors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Susglobal Energy Corp and Clean Harbors, you can compare the effects of market volatilities on Susglobal Energy and Clean Harbors 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 Susglobal Energy with a short position of Clean Harbors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Susglobal Energy and Clean Harbors.
Diversification Opportunities for Susglobal Energy and Clean Harbors
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Susglobal and Clean is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Susglobal Energy Corp and Clean Harbors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Harbors and Susglobal Energy 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 Susglobal Energy Corp are associated (or correlated) with Clean Harbors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Harbors has no effect on the direction of Susglobal Energy i.e., Susglobal Energy and Clean Harbors go up and down completely randomly.
Pair Corralation between Susglobal Energy and Clean Harbors
Given the investment horizon of 90 days Susglobal Energy Corp is expected to generate 5.0 times more return on investment than Clean Harbors. However, Susglobal Energy is 5.0 times more volatile than Clean Harbors. It trades about 0.03 of its potential returns per unit of risk. Clean Harbors is currently generating about 0.03 per unit of risk. If you would invest 2.58 in Susglobal Energy Corp on August 29, 2024 and sell it today you would lose (0.38) from holding Susglobal Energy Corp or give up 14.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Susglobal Energy Corp vs. Clean Harbors
Performance |
| Timeline |
| Susglobal Energy Corp |
| Clean Harbors |
Susglobal Energy and Clean Harbors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Susglobal Energy and Clean Harbors
The main advantage of trading using opposite Susglobal Energy and Clean Harbors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Susglobal Energy position performs unexpectedly, Clean Harbors 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 Clean Harbors will offset losses from the drop in Clean Harbors' long position.| Susglobal Energy vs. Republic Services | Susglobal Energy vs. Waste Connections | Susglobal Energy vs. Clean Harbors | Susglobal Energy vs. Gfl Environmental Holdings |
| Clean Harbors vs. Waste Connections | Clean Harbors vs. Casella Waste Systems | Clean Harbors vs. Waste Management | Clean Harbors vs. Gfl Environmental Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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