Correlation Between GFL ENVIRONM(SUBVTSH and Hexcel

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

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

Diversification Opportunities for GFL ENVIRONM(SUBVTSH and Hexcel

0.0

Correlation Coefficient

GFL ENVIRONM(SUBVTSH  Hexcel

Pay attention - limited upside

The 3 months correlation between GFL and Hexcel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GFL ENVIRONM and Hexcel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexcel and GFL ENVIRONM(SUBVTSH 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 Hexcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexcel has no effect on the direction of GFL ENVIRONM(SUBVTSH i.e., GFL ENVIRONM(SUBVTSH and Hexcel go up and down completely randomly.

Pair Corralation between GFL ENVIRONM(SUBVTSH and Hexcel

If you would invest  0.00  in Hexcel on October 6, 2024 and sell it today you would earn a total of  0.00  from holding Hexcel or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.88%
Values	Daily Returns

GFL ENVIRONM  vs.  Hexcel

GFL ENVIRONM(SUBVTSH

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GFL ENVIRONM are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GFL ENVIRONM(SUBVTSH reported solid returns over the last few months and may actually be approaching a breakup point.

Hexcel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hexcel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Hexcel is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GFL ENVIRONM(SUBVTSH and Hexcel

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

The idea behind GFL ENVIRONM and Hexcel 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .