Correlation Between Cleanaway Waste and Scandic Hotels
Can any of the company-specific risk be diversified away by investing in both Cleanaway Waste and Scandic Hotels 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 Cleanaway Waste and Scandic Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Waste Management and Scandic Hotels Group, you can compare the effects of market volatilities on Cleanaway Waste and Scandic Hotels 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 Cleanaway Waste with a short position of Scandic Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway Waste and Scandic Hotels.
Diversification Opportunities for Cleanaway Waste and Scandic Hotels
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cleanaway and Scandic is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Waste Management and Scandic Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandic Hotels Group and Cleanaway Waste 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 Cleanaway Waste Management are associated (or correlated) with Scandic Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandic Hotels Group has no effect on the direction of Cleanaway Waste i.e., Cleanaway Waste and Scandic Hotels go up and down completely randomly.
Pair Corralation between Cleanaway Waste and Scandic Hotels
Assuming the 90 days trading horizon Cleanaway Waste Management is expected to generate 0.4 times more return on investment than Scandic Hotels. However, Cleanaway Waste Management is 2.52 times less risky than Scandic Hotels. It trades about -0.01 of its potential returns per unit of risk. Scandic Hotels Group is currently generating about -0.01 per unit of risk. If you would invest 150.00 in Cleanaway Waste Management on September 10, 2025 and sell it today you would lose (2.00) from holding Cleanaway Waste Management or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleanaway Waste Management vs. Scandic Hotels Group
Performance |
| Timeline |
| Cleanaway Waste Mana |
| Scandic Hotels Group |
Cleanaway Waste and Scandic Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway Waste and Scandic Hotels
The main advantage of trading using opposite Cleanaway Waste and Scandic Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway Waste position performs unexpectedly, Scandic Hotels 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 Scandic Hotels will offset losses from the drop in Scandic Hotels' long position.| Cleanaway Waste vs. Apple Inc | Cleanaway Waste vs. Apple Inc | Cleanaway Waste vs. Apple Inc | Cleanaway Waste vs. Apple Inc |
| Scandic Hotels vs. Hyatt Hotels | Scandic Hotels vs. InterContinental Hotels Group | Scandic Hotels vs. INTERCONT HOTELS | Scandic Hotels vs. Accor SA |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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