Correlation Between Stericycle and Tomra Systems
Can any of the company-specific risk be diversified away by investing in both Stericycle and Tomra Systems 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 Stericycle and Tomra Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stericycle and Tomra Systems ASA, you can compare the effects of market volatilities on Stericycle and Tomra Systems 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 Stericycle with a short position of Tomra Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stericycle and Tomra Systems.
Diversification Opportunities for Stericycle and Tomra Systems
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stericycle and Tomra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stericycle and Tomra Systems ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tomra Systems ASA and Stericycle 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 Stericycle are associated (or correlated) with Tomra Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tomra Systems ASA has no effect on the direction of Stericycle i.e., Stericycle and Tomra Systems go up and down completely randomly.
Pair Corralation between Stericycle and Tomra Systems
If you would invest 1,282 in Tomra Systems ASA on December 2, 2024 and sell it today you would earn a total of 194.00 from holding Tomra Systems ASA or generate 15.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Stericycle vs. Tomra Systems ASA
Performance |
Timeline |
Stericycle |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Tomra Systems ASA |
Stericycle and Tomra Systems Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stericycle and Tomra Systems
The main advantage of trading using opposite Stericycle and Tomra Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stericycle position performs unexpectedly, Tomra Systems 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 Tomra Systems will offset losses from the drop in Tomra Systems' long position.Stericycle vs. Clean Harbors | Stericycle vs. Waste Connections | Stericycle vs. Casella Waste Systems | Stericycle vs. Montrose Environmental Grp |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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