Correlation Between Clean Harbors and Waste Connections
Can any of the company-specific risk be diversified away by investing in both Clean Harbors and Waste Connections 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 Clean Harbors and Waste Connections into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Harbors and Waste Connections, you can compare the effects of market volatilities on Clean Harbors and Waste Connections 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 Clean Harbors with a short position of Waste Connections. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Harbors and Waste Connections.
Diversification Opportunities for Clean Harbors and Waste Connections
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Clean and Waste is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Clean Harbors and Waste Connections in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waste Connections and Clean Harbors 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 Clean Harbors are associated (or correlated) with Waste Connections. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waste Connections has no effect on the direction of Clean Harbors i.e., Clean Harbors and Waste Connections go up and down completely randomly.
Pair Corralation between Clean Harbors and Waste Connections
Considering the 90-day investment horizon Clean Harbors is expected to generate 0.8 times more return on investment than Waste Connections. However, Clean Harbors is 1.25 times less risky than Waste Connections. It trades about 0.09 of its potential returns per unit of risk. Waste Connections is currently generating about -0.07 per unit of risk. If you would invest 22,279 in Clean Harbors on May 4, 2025 and sell it today you would earn a total of 1,138 from holding Clean Harbors or generate 5.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Clean Harbors vs. Waste Connections
Performance |
Timeline |
Clean Harbors |
Waste Connections |
Clean Harbors and Waste Connections Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clean Harbors and Waste Connections
The main advantage of trading using opposite Clean Harbors and Waste Connections positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Harbors position performs unexpectedly, Waste Connections 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 Waste Connections will offset losses from the drop in Waste Connections' long position.Clean Harbors vs. AGCO Corporation | Clean Harbors vs. Casella Waste Systems | Clean Harbors vs. Republic Services | Clean Harbors vs. Waste Connections |
Waste Connections vs. Republic Services | Waste Connections vs. Casella Waste Systems | Waste Connections vs. Clean Harbors | Waste Connections vs. Gfl Environmental Holdings |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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