Correlation Between SLC Agricola and GLG Life
Can any of the company-specific risk be diversified away by investing in both SLC Agricola 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 SLC Agricola and GLG Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLC Agricola SA and GLG Life Tech, you can compare the effects of market volatilities on SLC Agricola 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 SLC Agricola with a short position of GLG Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLC Agricola and GLG Life.
Diversification Opportunities for SLC Agricola and GLG Life
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SLC and GLG is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SLC Agricola SA 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 SLC Agricola 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 SLC Agricola SA 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 SLC Agricola i.e., SLC Agricola and GLG Life go up and down completely randomly.
Pair Corralation between SLC Agricola and GLG Life
If you would invest 285.00 in SLC Agricola SA on October 26, 2024 and sell it today you would earn a total of 24.00 from holding SLC Agricola SA or generate 8.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
SLC Agricola SA vs. GLG Life Tech
Performance |
| Timeline |
| SLC Agricola SA |
| GLG Life Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SLC Agricola and GLG Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLC Agricola and GLG Life
The main advantage of trading using opposite SLC Agricola and GLG Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLC Agricola 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.| SLC Agricola vs. Golden Agri Resources | SLC Agricola vs. Wilmar International | SLC Agricola vs. Brasilagro Adr | SLC Agricola vs. Alico Inc |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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