Correlation Between Gfl Environmental and LanzaTech Global

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Gfl Environmental and LanzaTech Global 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 LanzaTech Global 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 LanzaTech Global, you can compare the effects of market volatilities on Gfl Environmental and LanzaTech Global 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 LanzaTech Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfl Environmental and LanzaTech Global.

Diversification Opportunities for Gfl Environmental and LanzaTech Global

-0.7
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Gfl and LanzaTech is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Gfl Environmental Holdings and LanzaTech Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LanzaTech Global 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 LanzaTech Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LanzaTech Global has no effect on the direction of Gfl Environmental i.e., Gfl Environmental and LanzaTech Global go up and down completely randomly.

Pair Corralation between Gfl Environmental and LanzaTech Global

Considering the 90-day investment horizon Gfl Environmental is expected to generate 22.32 times less return on investment than LanzaTech Global. But when comparing it to its historical volatility, Gfl Environmental Holdings is 28.4 times less risky than LanzaTech Global. It trades about 0.06 of its potential returns per unit of risk. LanzaTech Global is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  37.00  in LanzaTech Global on September 20, 2024 and sell it today you would lose (28.00) from holding LanzaTech Global or give up 75.68% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy88.08%
ValuesDaily Returns

Gfl Environmental Holdings  vs.  LanzaTech Global

 Performance 
       Timeline  
Gfl Environmental 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Gfl Environmental Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile technical and fundamental indicators, Gfl Environmental disclosed solid returns over the last few months and may actually be approaching a breakup point.
LanzaTech Global 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days LanzaTech Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Gfl Environmental and LanzaTech Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Gfl Environmental and LanzaTech Global

The main advantage of trading using opposite Gfl Environmental and LanzaTech Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfl Environmental position performs unexpectedly, LanzaTech Global 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 LanzaTech Global will offset losses from the drop in LanzaTech Global's long position.
The idea behind Gfl Environmental Holdings and LanzaTech Global 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.
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Money Managers
Screen money managers from public funds and ETFs managed around the world
Global Correlations
Find global opportunities by holding instruments from different markets