Correlation Between Gfl Environmental and FPX Nickel
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and FPX Nickel 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 Gfl Environmental and FPX Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gfl Environmental Holdings and FPX Nickel Corp, you can compare the effects of market volatilities on Gfl Environmental and FPX Nickel 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 Gfl Environmental with a short position of FPX Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and FPX Nickel.
Diversification Opportunities for Gfl Environmental and FPX Nickel
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gfl and FPX is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and FPX Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPX Nickel Corp and Gfl Environmental 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 Gfl Environmental Holdings are associated (or correlated) with FPX Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPX Nickel Corp has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and FPX Nickel go up and down completely randomly.
Pair Corralation between Gfl Environmental and FPX Nickel
Assuming the 90 days trading horizon Gfl Environmental Holdings is expected to generate 0.47 times more return on investment than FPX Nickel. However, Gfl Environmental Holdings is 2.11 times less risky than FPX Nickel. It trades about 0.09 of its potential returns per unit of risk. FPX Nickel Corp is currently generating about -0.01 per unit of risk. If you would invest 4,247 in Gfl Environmental Holdings on September 6, 2024 and sell it today you would earn a total of 2,345 from holding Gfl Environmental Holdings or generate 55.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gfl Environmental Holdings vs. FPX Nickel Corp
Performance |
Timeline |
Gfl Environmental |
FPX Nickel Corp |
Gfl Environmental and FPX Nickel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gfl Environmental and FPX Nickel
The main advantage of trading using opposite Gfl Environmental and FPX Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, FPX Nickel 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 FPX Nickel will offset losses from the drop in FPX Nickel's long position.Gfl Environmental vs. Waste Connections | Gfl Environmental vs. TFI International | Gfl Environmental vs. WSP Global | Gfl Environmental vs. Dye Durham |
FPX Nickel vs. Bip Investment Corp | FPX Nickel vs. Canlan Ice Sports | FPX Nickel vs. Algoma Steel Group | FPX Nickel vs. Maple Peak Investments |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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