Correlation Between ATS CORP and Gfl Environmental

Can any of the company-specific risk be diversified away by investing in both ATS CORP and Gfl Environmental 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 ATS CORP and Gfl Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATS P and Gfl Environmental Holdings, you can compare the effects of market volatilities on ATS CORP and Gfl Environmental 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 ATS CORP with a short position of Gfl Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATS CORP and Gfl Environmental.

Diversification Opportunities for ATS CORP and Gfl Environmental

-0.03

Correlation Coefficient

ATS CORP  Gfl Environmental

Good diversification

The 3 months correlation between ATS and Gfl is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ATS P and Gfl Environmental Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gfl Environmental and ATS CORP 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 ATS P are associated (or correlated) with Gfl Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gfl Environmental has no effect on the direction of ATS CORP i.e., ATS CORP and Gfl Environmental go up and down completely randomly.

Pair Corralation between ATS CORP and Gfl Environmental

Assuming the 90 days trading horizon ATS P is expected to generate 1.64 times more return on investment than Gfl Environmental. However, ATS CORP is 1.64 times more volatile than Gfl Environmental Holdings. It trades about -0.06 of its potential returns per unit of risk. Gfl Environmental Holdings is currently generating about -0.2 per unit of risk. If you would invest  4,171  in ATS P on April 8, 2025 and sell it today you would lose (122.00) from holding ATS P or give up 2.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ATS P  vs.  Gfl Environmental Holdings

ATS CORP

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATS P are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, ATS CORP displayed solid returns over the last few months and may actually be approaching a breakup point.

Gfl Environmental

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gfl Environmental Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating essential indicators, Gfl Environmental may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ATS CORP and Gfl Environmental

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

The idea behind ATS P and Gfl Environmental Holdings 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.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.