Correlation Between Golden Agri-Resources and Kalera Public
Can any of the company-specific risk be diversified away by investing in both Golden Agri-Resources and Kalera Public 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 Golden Agri-Resources and Kalera Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Agri Resources and Kalera Public Limited, you can compare the effects of market volatilities on Golden Agri-Resources and Kalera Public 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 Golden Agri-Resources with a short position of Kalera Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Agri-Resources and Kalera Public.
Diversification Opportunities for Golden Agri-Resources and Kalera Public
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and Kalera is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Golden Agri Resources and Kalera Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalera Public Limited and Golden Agri-Resources 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 Golden Agri Resources are associated (or correlated) with Kalera Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalera Public Limited has no effect on the direction of Golden Agri-Resources i.e., Golden Agri-Resources and Kalera Public go up and down completely randomly.
Pair Corralation between Golden Agri-Resources and Kalera Public
If you would invest 13.00 in Golden Agri Resources on October 28, 2024 and sell it today you would earn a total of 10.00 from holding Golden Agri Resources or generate 76.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Golden Agri Resources vs. Kalera Public Limited
Performance |
| Timeline |
| Golden Agri Resources |
| Kalera Public Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Golden Agri-Resources and Kalera Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Agri-Resources and Kalera Public
The main advantage of trading using opposite Golden Agri-Resources and Kalera Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Agri-Resources position performs unexpectedly, Kalera Public 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 Kalera Public will offset losses from the drop in Kalera Public's long position.| Golden Agri-Resources vs. Wilmar International | Golden Agri-Resources vs. SLC Agricola SA | Golden Agri-Resources vs. Brasilagro Adr | Golden Agri-Resources vs. Alico Inc |
| Kalera Public vs. Global Clean Energy | Kalera Public vs. Limoneira Co | Kalera Public vs. Edible Garden AG | Kalera Public vs. Golden Agri Resources |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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