Correlation Between Stag Industrial and Cleanaway Waste
Can any of the company-specific risk be diversified away by investing in both Stag Industrial and Cleanaway Waste 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 Stag Industrial and Cleanaway Waste into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stag Industrial and Cleanaway Waste Management, you can compare the effects of market volatilities on Stag Industrial and Cleanaway Waste 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 Stag Industrial with a short position of Cleanaway Waste. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stag Industrial and Cleanaway Waste.
Diversification Opportunities for Stag Industrial and Cleanaway Waste
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stag and Cleanaway is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Stag Industrial and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana and Stag Industrial 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 Stag Industrial are associated (or correlated) with Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of Stag Industrial i.e., Stag Industrial and Cleanaway Waste go up and down completely randomly.
Pair Corralation between Stag Industrial and Cleanaway Waste
Assuming the 90 days trading horizon Stag Industrial is expected to generate 1.71 times less return on investment than Cleanaway Waste. But when comparing it to its historical volatility, Stag Industrial is 2.45 times less risky than Cleanaway Waste. It trades about 0.14 of its potential returns per unit of risk. Cleanaway Waste Management is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 156.00 in Cleanaway Waste Management on November 2, 2024 and sell it today you would earn a total of 7.00 from holding Cleanaway Waste Management or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stag Industrial vs. Cleanaway Waste Management
Performance |
| Timeline |
| Stag Industrial |
| Cleanaway Waste Mana |
Stag Industrial and Cleanaway Waste Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stag Industrial and Cleanaway Waste
The main advantage of trading using opposite Stag Industrial and Cleanaway Waste positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stag Industrial position performs unexpectedly, Cleanaway Waste 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 Cleanaway Waste will offset losses from the drop in Cleanaway Waste's long position.| Stag Industrial vs. FAST RETAIL ADR | Stag Industrial vs. CARSALESCOM | Stag Industrial vs. Gol Intelligent Airlines | Stag Industrial vs. CarsalesCom |
| Cleanaway Waste vs. G III Apparel Group | Cleanaway Waste vs. TOMBADOR IRON LTD | Cleanaway Waste vs. COSMOSTEEL HLDGS | Cleanaway Waste vs. RYU Apparel |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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