Correlation Between Klabin Sa and GLT Old

Can any of the company-specific risk be diversified away by investing in both Klabin Sa and GLT Old 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 GLT Old 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 GLT Old, you can compare the effects of market volatilities on Klabin Sa and GLT Old 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 GLT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klabin Sa and GLT Old.

Diversification Opportunities for Klabin Sa and GLT Old

-0.24

Correlation Coefficient

Klabin Sa  GLT Old

Very good diversification

The 3 months correlation between Klabin and GLT is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Klabin Sa A and GLT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLT Old 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 GLT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLT Old has no effect on the direction of Klabin Sa i.e., Klabin Sa and GLT Old go up and down completely randomly.

Pair Corralation between Klabin Sa and GLT Old

Assuming the 90 days horizon Klabin Sa A is expected to generate 0.84 times more return on investment than GLT Old. However, Klabin Sa A is 1.19 times less risky than GLT Old. It trades about 0.03 of its potential returns per unit of risk. GLT Old is currently generating about 0.0 per unit of risk. If you would invest  625.00  in Klabin Sa A on October 10, 2024 and sell it today you would earn a total of  98.00  from holding Klabin Sa A or generate 15.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.12%
Values	Daily Returns

Klabin Sa A  vs.  GLT Old

Klabin Sa A

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Klabin Sa A are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Klabin Sa is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

GLT Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GLT Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Klabin Sa and GLT Old

The main advantage of trading using opposite Klabin Sa and GLT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klabin Sa position performs unexpectedly, GLT Old 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 GLT Old will offset losses from the drop in GLT Old's long position.

The idea behind Klabin Sa A and GLT Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.