Correlation Between Waste Connections and Stericycle
Can any of the company-specific risk be diversified away by investing in both Waste Connections and Stericycle 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 Waste Connections and Stericycle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waste Connections and Stericycle, you can compare the effects of market volatilities on Waste Connections and Stericycle 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 Waste Connections with a short position of Stericycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waste Connections and Stericycle.
Diversification Opportunities for Waste Connections and Stericycle
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Waste and Stericycle is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Waste Connections and Stericycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stericycle and Waste Connections 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 Waste Connections are associated (or correlated) with Stericycle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stericycle has no effect on the direction of Waste Connections i.e., Waste Connections and Stericycle go up and down completely randomly.
Pair Corralation between Waste Connections and Stericycle
Considering the 90-day investment horizon Waste Connections is expected to generate 1.64 times less return on investment than Stericycle. But when comparing it to its historical volatility, Waste Connections is 2.22 times less risky than Stericycle. It trades about 0.06 of its potential returns per unit of risk. Stericycle is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,259 in Stericycle on August 24, 2024 and sell it today you would earn a total of 2,591 from holding Stericycle or generate 49.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Waste Connections vs. Stericycle
Performance |
| Timeline |
| Waste Connections |
| Stericycle |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Waste Connections and Stericycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waste Connections and Stericycle
The main advantage of trading using opposite Waste Connections and Stericycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waste Connections position performs unexpectedly, Stericycle 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 Stericycle will offset losses from the drop in Stericycle's long position.| Waste Connections vs. Clean Harbors | Waste Connections vs. Casella Waste Systems | Waste Connections vs. Waste Management | Waste Connections vs. Gfl Environmental Holdings |
| Stericycle vs. Clean Harbors | Stericycle vs. Waste Connections | Stericycle vs. Casella Waste Systems | Stericycle vs. Montrose Environmental Grp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |