Correlation Between GLG Life and Edible Garden
Can any of the company-specific risk be diversified away by investing in both GLG Life and Edible Garden 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 Edible Garden 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 Edible Garden AG, you can compare the effects of market volatilities on GLG Life and Edible Garden 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 Edible Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG Life and Edible Garden.
Diversification Opportunities for GLG Life and Edible Garden
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GLG and Edible is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding GLG Life Tech and Edible Garden AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edible Garden AG 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 Edible Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edible Garden AG has no effect on the direction of GLG Life i.e., GLG Life and Edible Garden go up and down completely randomly.
Pair Corralation between GLG Life and Edible Garden
If you would invest 31.00 in Edible Garden AG on October 26, 2024 and sell it today you would lose (1.21) from holding Edible Garden AG or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
GLG Life Tech vs. Edible Garden AG
Performance |
| Timeline |
| GLG Life Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Edible Garden AG |
GLG Life and Edible Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG Life and Edible Garden
The main advantage of trading using opposite GLG Life and Edible Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG Life position performs unexpectedly, Edible Garden 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 Edible Garden will offset losses from the drop in Edible Garden'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 |
| Edible Garden vs. Golden Agri Resources | Edible Garden vs. Vital Farms | Edible Garden vs. Local Bounti Corp | Edible Garden vs. Fresh Del Monte |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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