Correlation Between Edible Garden and GLG Life
Can any of the company-specific risk be diversified away by investing in both Edible Garden 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 Edible Garden and GLG Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edible Garden AG and GLG Life Tech, you can compare the effects of market volatilities on Edible Garden 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 Edible Garden with a short position of GLG Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edible Garden and GLG Life.
Diversification Opportunities for Edible Garden and GLG Life
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Edible and GLG is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Edible Garden AG 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 Edible Garden 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 Edible Garden AG 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 Edible Garden i.e., Edible Garden and GLG Life go up and down completely randomly.
Pair Corralation between Edible Garden and GLG Life
If you would invest 4.82 in GLG Life Tech on November 4, 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Edible Garden AG vs. GLG Life Tech
Performance |
| Timeline |
| Edible Garden AG |
| GLG Life Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Edible Garden and GLG Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edible Garden and GLG Life
The main advantage of trading using opposite Edible Garden and GLG Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edible Garden 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.| Edible Garden vs. Golden Agri Resources | Edible Garden vs. Vital Farms | Edible Garden vs. Local Bounti Corp | Edible Garden vs. Fresh Del Monte |
| 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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