Correlation Between GFL ENVIRONM and Hawesko Holding

Can any of the company-specific risk be diversified away by investing in both GFL ENVIRONM and Hawesko Holding 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 ENVIRONM and Hawesko Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GFL ENVIRONM and Hawesko Holding AG, you can compare the effects of market volatilities on GFL ENVIRONM and Hawesko Holding 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 ENVIRONM with a short position of Hawesko Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFL ENVIRONM and Hawesko Holding.

Diversification Opportunities for GFL ENVIRONM and Hawesko Holding

-0.48

Correlation Coefficient

GFL ENVIRONM  Hawesko Holding

Very good diversification

The 3 months correlation between GFL and Hawesko is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding GFL ENVIRONM and Hawesko Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawesko Holding AG and GFL ENVIRONM 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 ENVIRONM are associated (or correlated) with Hawesko Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawesko Holding AG has no effect on the direction of GFL ENVIRONM i.e., GFL ENVIRONM and Hawesko Holding go up and down completely randomly.

Pair Corralation between GFL ENVIRONM and Hawesko Holding

Assuming the 90 days horizon GFL ENVIRONM is expected to under-perform the Hawesko Holding. But the stock apears to be less risky and, when comparing its historical volatility, GFL ENVIRONM is 4.67 times less risky than Hawesko Holding. The stock trades about -0.16 of its potential returns per unit of risk. The Hawesko Holding AG is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,430  in Hawesko Holding AG on October 4, 2024 and sell it today you would earn a total of  200.00  from holding Hawesko Holding AG or generate 8.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	94.74%
Values	Daily Returns

GFL ENVIRONM  vs.  Hawesko Holding AG

GFL ENVIRONM

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GFL ENVIRONM are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GFL ENVIRONM reported solid returns over the last few months and may actually be approaching a breakup point.

Hawesko Holding AG

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hawesko Holding AG are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Hawesko Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with GFL ENVIRONM and Hawesko Holding

The main advantage of trading using opposite GFL ENVIRONM and Hawesko Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFL ENVIRONM position performs unexpectedly, Hawesko Holding 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 Hawesko Holding will offset losses from the drop in Hawesko Holding's long position.

The idea behind GFL ENVIRONM and Hawesko Holding AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..