Correlation Between Stericycle and OriginClear
Can any of the company-specific risk be diversified away by investing in both Stericycle and OriginClear 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 Stericycle and OriginClear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stericycle and OriginClear, you can compare the effects of market volatilities on Stericycle and OriginClear 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 Stericycle with a short position of OriginClear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stericycle and OriginClear.
Diversification Opportunities for Stericycle and OriginClear
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stericycle and OriginClear is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Stericycle and OriginClear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OriginClear and Stericycle 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 Stericycle are associated (or correlated) with OriginClear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OriginClear has no effect on the direction of Stericycle i.e., Stericycle and OriginClear go up and down completely randomly.
Pair Corralation between Stericycle and OriginClear
Given the investment horizon of 90 days Stericycle is expected to generate 0.11 times more return on investment than OriginClear. However, Stericycle is 9.28 times less risky than OriginClear. It trades about 0.04 of its potential returns per unit of risk. OriginClear is currently generating about 0.0 per unit of risk. If you would invest 7,800 in Stericycle on August 29, 2024 and sell it today you would earn a total of 50.00 from holding Stericycle or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 52.17% |
| Values | Daily Returns |
Stericycle vs. OriginClear
Performance |
| Timeline |
| Stericycle |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| OriginClear |
Stericycle and OriginClear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stericycle and OriginClear
The main advantage of trading using opposite Stericycle and OriginClear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stericycle position performs unexpectedly, OriginClear 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 OriginClear will offset losses from the drop in OriginClear's long position.| Stericycle vs. Clean Harbors | Stericycle vs. Waste Connections | Stericycle vs. Casella Waste Systems | Stericycle vs. Montrose Environmental Grp |
| OriginClear vs. BacTech Environmental | OriginClear vs. Agilyx AS | OriginClear vs. Avalon Holdings | OriginClear vs. Ambipar Emergency Response |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |