Correlation Between Cleanaway Waste and Stag Industrial
Can any of the company-specific risk be diversified away by investing in both Cleanaway Waste and Stag Industrial 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 Cleanaway Waste and Stag Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Waste Management and Stag Industrial, you can compare the effects of market volatilities on Cleanaway Waste and Stag Industrial 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 Cleanaway Waste with a short position of Stag Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway Waste and Stag Industrial.
Diversification Opportunities for Cleanaway Waste and Stag Industrial
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cleanaway and Stag is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Waste Management and Stag Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stag Industrial and Cleanaway Waste 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 Cleanaway Waste Management are associated (or correlated) with Stag Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stag Industrial has no effect on the direction of Cleanaway Waste i.e., Cleanaway Waste and Stag Industrial go up and down completely randomly.
Pair Corralation between Cleanaway Waste and Stag Industrial
Assuming the 90 days trading horizon Cleanaway Waste Management is expected to generate 2.45 times more return on investment than Stag Industrial. However, Cleanaway Waste is 2.45 times more volatile than Stag Industrial. It trades about 0.1 of its potential returns per unit of risk. Stag Industrial is currently generating about 0.14 per unit of risk. 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 |
Cleanaway Waste Management vs. Stag Industrial
Performance |
| Timeline |
| Cleanaway Waste Mana |
| Stag Industrial |
Cleanaway Waste and Stag Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway Waste and Stag Industrial
The main advantage of trading using opposite Cleanaway Waste and Stag Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway Waste position performs unexpectedly, Stag Industrial 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 Stag Industrial will offset losses from the drop in Stag Industrial's long position.| Cleanaway Waste vs. G III Apparel Group | Cleanaway Waste vs. TOMBADOR IRON LTD | Cleanaway Waste vs. COSMOSTEEL HLDGS | Cleanaway Waste vs. RYU Apparel |
| Stag Industrial vs. FAST RETAIL ADR | Stag Industrial vs. CARSALESCOM | Stag Industrial vs. Gol Intelligent Airlines | Stag Industrial vs. CarsalesCom |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |