Correlation Between Waste Management, and Labrador Iron

Can any of the company-specific risk be diversified away by investing in both Waste Management, and Labrador Iron 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 Management, and Labrador Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Waste Management, and Labrador Iron Ore, you can compare the effects of market volatilities on Waste Management, and Labrador Iron 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 Management, with a short position of Labrador Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waste Management, and Labrador Iron.

Diversification Opportunities for Waste Management, and Labrador Iron

-0.47

Correlation Coefficient

Waste Management,  Labrador Iron

Very good diversification

The 3 months correlation between Waste and Labrador is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Waste Management, and Labrador Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Labrador Iron Ore and Waste Management, 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 Management, are associated (or correlated) with Labrador Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Labrador Iron Ore has no effect on the direction of Waste Management, i.e., Waste Management, and Labrador Iron go up and down completely randomly.

Pair Corralation between Waste Management, and Labrador Iron

Assuming the 90 days trading horizon Waste Management, is expected to generate 2.1 times more return on investment than Labrador Iron. However, Waste Management, is 2.1 times more volatile than Labrador Iron Ore. It trades about 0.31 of its potential returns per unit of risk. Labrador Iron Ore is currently generating about 0.23 per unit of risk. If you would invest  1,884  in Waste Management, on September 3, 2025 and sell it today you would earn a total of  172.00  from holding Waste Management, or generate 9.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Waste Management,  vs.  Labrador Iron Ore

Waste Management,

Risk-Adjusted Performance

Weakest

Over the last 90 days Waste Management, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Waste Management, is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Labrador Iron Ore

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Labrador Iron Ore are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Labrador Iron may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Waste Management, and Labrador Iron

The main advantage of trading using opposite Waste Management, and Labrador Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waste Management, position performs unexpectedly, Labrador Iron 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 Labrador Iron will offset losses from the drop in Labrador Iron's long position.

The idea behind Waste Management, and Labrador Iron Ore 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.