Correlation Between Waste Connections and China Gold
Can any of the company-specific risk be diversified away by investing in both Waste Connections and China Gold 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 Waste Connections and China Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waste Connections and China Gold International, you can compare the effects of market volatilities on Waste Connections and China Gold 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 Waste Connections with a short position of China Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waste Connections and China Gold.
Diversification Opportunities for Waste Connections and China Gold
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Waste and China is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Waste Connections and China Gold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Gold International and Waste Connections 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 Waste Connections are associated (or correlated) with China Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Gold International has no effect on the direction of Waste Connections i.e., Waste Connections and China Gold go up and down completely randomly.
Pair Corralation between Waste Connections and China Gold
Assuming the 90 days trading horizon Waste Connections is expected to under-perform the China Gold. But the stock apears to be less risky and, when comparing its historical volatility, Waste Connections is 3.78 times less risky than China Gold. The stock trades about -0.01 of its potential returns per unit of risk. The China Gold International is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,803 in China Gold International on August 28, 2025 and sell it today you would earn a total of 739.00 from holding China Gold International or generate 40.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Waste Connections vs. China Gold International
Performance |
| Timeline |
| Waste Connections |
| China Gold International |
Waste Connections and China Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waste Connections and China Gold
The main advantage of trading using opposite Waste Connections and China Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waste Connections position performs unexpectedly, China Gold 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 China Gold will offset losses from the drop in China Gold's long position.| Waste Connections vs. Diamond Estates Wines | Waste Connections vs. Cogeco Communications | Waste Connections vs. Contagious Gaming | Waste Connections vs. Dream Office Real |
| China Gold vs. Quipt Home Medical | China Gold vs. Sparx Technology | China Gold vs. Evertz Technologies Limited | China Gold vs. Canlan Ice Sports |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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