Correlation Between Klabin Sa and Glatfelter
Can any of the company-specific risk be diversified away by investing in both Klabin Sa and Glatfelter 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 Klabin Sa and Glatfelter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klabin Sa A and Glatfelter, you can compare the effects of market volatilities on Klabin Sa and Glatfelter 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 Klabin Sa with a short position of Glatfelter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klabin Sa and Glatfelter.
Diversification Opportunities for Klabin Sa and Glatfelter
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Klabin and Glatfelter is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Klabin Sa A and Glatfelter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glatfelter and Klabin Sa 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 Klabin Sa A are associated (or correlated) with Glatfelter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glatfelter has no effect on the direction of Klabin Sa i.e., Klabin Sa and Glatfelter go up and down completely randomly.
Pair Corralation between Klabin Sa and Glatfelter
Assuming the 90 days horizon Klabin Sa A is expected to under-perform the Glatfelter. But the pink sheet apears to be less risky and, when comparing its historical volatility, Klabin Sa A is 1.58 times less risky than Glatfelter. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Glatfelter is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,197 in Glatfelter on August 25, 2024 and sell it today you would lose (92.00) from holding Glatfelter or give up 4.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.13% |
| Values | Daily Returns |
Klabin Sa A vs. Glatfelter
Performance |
| Timeline |
| Klabin Sa A |
| Glatfelter |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Klabin Sa and Glatfelter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klabin Sa and Glatfelter
The main advantage of trading using opposite Klabin Sa and Glatfelter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klabin Sa position performs unexpectedly, Glatfelter 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 Glatfelter will offset losses from the drop in Glatfelter's long position.| Klabin Sa vs. Mondi PLC ADR | Klabin Sa vs. Suzano Papel e | Klabin Sa vs. Nine Dragons Paper | Klabin Sa vs. Nine Dragons Paper |
| Glatfelter vs. Mercer International | Glatfelter vs. Sylvamo Corp | Glatfelter vs. Suzano Papel e | Glatfelter vs. UPM Kymmene Oyj |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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