Correlation Between GLG Life and AgriFORCE Growing
Can any of the company-specific risk be diversified away by investing in both GLG Life and AgriFORCE Growing 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 GLG Life and AgriFORCE Growing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLG Life Tech and AgriFORCE Growing Systems, you can compare the effects of market volatilities on GLG Life and AgriFORCE Growing 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 GLG Life with a short position of AgriFORCE Growing. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG Life and AgriFORCE Growing.
Diversification Opportunities for GLG Life and AgriFORCE Growing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and AgriFORCE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG Life Tech and AgriFORCE Growing Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriFORCE Growing Systems and GLG Life 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 GLG Life Tech are associated (or correlated) with AgriFORCE Growing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriFORCE Growing Systems has no effect on the direction of GLG Life i.e., GLG Life and AgriFORCE Growing go up and down completely randomly.
Pair Corralation between GLG Life and AgriFORCE Growing
If you would invest 11.00 in AgriFORCE Growing Systems on November 6, 2024 and sell it today you would lose (10.56) from holding AgriFORCE Growing Systems or give up 96.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.35% |
| Values | Daily Returns |
GLG Life Tech vs. AgriFORCE Growing Systems
Performance |
| Timeline |
| GLG Life Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AgriFORCE Growing Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GLG Life and AgriFORCE Growing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG Life and AgriFORCE Growing
The main advantage of trading using opposite GLG Life and AgriFORCE Growing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG Life position performs unexpectedly, AgriFORCE Growing 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 AgriFORCE Growing will offset losses from the drop in AgriFORCE Growing's long position.| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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