Correlation Between Susglobal Energy and Gfl Environmental
Can any of the company-specific risk be diversified away by investing in both Susglobal Energy 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 Susglobal Energy and Gfl Environmental 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 Gfl Environmental Holdings, you can compare the effects of market volatilities on Susglobal Energy 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 Susglobal Energy with a short position of Gfl Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Susglobal Energy and Gfl Environmental.
Diversification Opportunities for Susglobal Energy and Gfl Environmental
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Susglobal and Gfl is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Susglobal Energy Corp and Gfl Environmental Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gfl Environmental 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 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 Susglobal Energy i.e., Susglobal Energy and Gfl Environmental go up and down completely randomly.
Pair Corralation between Susglobal Energy and Gfl Environmental
Given the investment horizon of 90 days Susglobal Energy is expected to generate 3.29 times less return on investment than Gfl Environmental. In addition to that, Susglobal Energy is 8.08 times more volatile than Gfl Environmental Holdings. It trades about 0.01 of its total potential returns per unit of risk. Gfl Environmental Holdings is currently generating about 0.28 per unit of volatility. If you would invest 4,102 in Gfl Environmental Holdings on August 25, 2024 and sell it today you would earn a total of 486.00 from holding Gfl Environmental Holdings or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Susglobal Energy Corp vs. Gfl Environmental Holdings
Performance |
| Timeline |
| Susglobal Energy Corp |
| Gfl Environmental |
Susglobal Energy and Gfl Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Susglobal Energy and Gfl Environmental
The main advantage of trading using opposite Susglobal Energy and Gfl Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Susglobal Energy 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.| Susglobal Energy vs. Republic Services | Susglobal Energy vs. Waste Connections | Susglobal Energy vs. Clean Harbors | Susglobal Energy vs. Gfl Environmental Holdings |
| Gfl Environmental vs. Clean Harbors | Gfl Environmental vs. Waste Connections | Gfl Environmental vs. Republic Services | Gfl Environmental vs. Casella Waste Systems |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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