Correlation Between AgriFORCE Growing and GLG Life
Can any of the company-specific risk be diversified away by investing in both AgriFORCE Growing and GLG Life 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 AgriFORCE Growing and GLG Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgriFORCE Growing Systems and GLG Life Tech, you can compare the effects of market volatilities on AgriFORCE Growing and GLG Life 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 AgriFORCE Growing with a short position of GLG Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriFORCE Growing and GLG Life.
Diversification Opportunities for AgriFORCE Growing and GLG Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AgriFORCE and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AgriFORCE Growing Systems and GLG Life Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLG Life Tech and AgriFORCE Growing 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 AgriFORCE Growing Systems are associated (or correlated) with GLG Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLG Life Tech has no effect on the direction of AgriFORCE Growing i.e., AgriFORCE Growing and GLG Life go up and down completely randomly.
Pair Corralation between AgriFORCE Growing and GLG Life
If you would invest 4.82 in GLG Life Tech on November 6, 2024 and sell it today you would earn a total of 0.00 from holding GLG Life Tech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AgriFORCE Growing Systems vs. GLG Life Tech
Performance |
| Timeline |
| AgriFORCE Growing Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GLG Life Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AgriFORCE Growing and GLG Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgriFORCE Growing and GLG Life
The main advantage of trading using opposite AgriFORCE Growing and GLG Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriFORCE Growing position performs unexpectedly, GLG Life 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 GLG Life will offset losses from the drop in GLG Life's long position.The idea behind AgriFORCE Growing Systems and GLG Life Tech 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.| GLG Life vs. Golden Agri Resources | GLG Life vs. Edible Garden AG | GLG Life vs. Vital Farms | GLG Life vs. Local Bounti Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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