Correlation Between GFL ENVIRONM(SUBVTSH and Greenland Hong

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

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

Diversification Opportunities for GFL ENVIRONM(SUBVTSH and Greenland Hong

-0.05

Correlation Coefficient

GFL ENVIRONM(SUBVTSH  Greenland Hong

Good diversification

The 3 months correlation between GFL and Greenland is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding GFL ENVIRONM and Greenland Hong Kong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Hong Kong 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 Greenland Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenland Hong Kong has no effect on the direction of GFL ENVIRONM(SUBVTSH i.e., GFL ENVIRONM(SUBVTSH and Greenland Hong go up and down completely randomly.

Pair Corralation between GFL ENVIRONM(SUBVTSH and Greenland Hong

Assuming the 90 days horizon GFL ENVIRONM is expected to generate 0.26 times more return on investment than Greenland Hong. However, GFL ENVIRONM is 3.81 times less risky than Greenland Hong. It trades about 0.04 of its potential returns per unit of risk. Greenland Hong Kong is currently generating about -0.05 per unit of risk. If you would invest  4,259  in GFL ENVIRONM on December 27, 2024 and sell it today you would earn a total of  161.00  from holding GFL ENVIRONM or generate 3.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GFL ENVIRONM  vs.  Greenland Hong Kong

GFL ENVIRONM(SUBVTSH

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GFL ENVIRONM are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, GFL ENVIRONM(SUBVTSH is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Greenland Hong Kong

Risk-Adjusted Performance

Very Weak

Over the last 90 days Greenland Hong Kong has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with GFL ENVIRONM(SUBVTSH and Greenland Hong

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

The idea behind GFL ENVIRONM and Greenland Hong Kong 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.