Correlation Between Brasilagro Adr and GLG Life
Can any of the company-specific risk be diversified away by investing in both Brasilagro Adr 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 Brasilagro Adr and GLG Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brasilagro Adr and GLG Life Tech, you can compare the effects of market volatilities on Brasilagro Adr 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 Brasilagro Adr with a short position of GLG Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brasilagro Adr and GLG Life.
Diversification Opportunities for Brasilagro Adr and GLG Life
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brasilagro and GLG is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Brasilagro Adr 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 Brasilagro Adr 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 Brasilagro Adr 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 Brasilagro Adr i.e., Brasilagro Adr and GLG Life go up and down completely randomly.
Pair Corralation between Brasilagro Adr and GLG Life
If you would invest 361.00 in Brasilagro Adr on October 26, 2024 and sell it today you would earn a total of 18.00 from holding Brasilagro Adr or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Brasilagro Adr vs. GLG Life Tech
Performance |
| Timeline |
| Brasilagro Adr |
| GLG Life Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brasilagro Adr and GLG Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brasilagro Adr and GLG Life
The main advantage of trading using opposite Brasilagro Adr and GLG Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brasilagro Adr 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.| Brasilagro Adr vs. Austevoll Seafood ASA | Brasilagro Adr vs. Golden Agri Resources | Brasilagro Adr vs. SalMar ASA | Brasilagro Adr vs. Wilmar International |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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