Correlation Between Mondi PLC and GLT Old

Can any of the company-specific risk be diversified away by investing in both Mondi PLC 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 Mondi PLC and GLT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mondi PLC ADR and GLT Old, you can compare the effects of market volatilities on Mondi PLC 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 Mondi PLC with a short position of GLT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondi PLC and GLT Old.

Diversification Opportunities for Mondi PLC and GLT Old

-0.29

Correlation Coefficient

Mondi PLC  GLT Old

Very good diversification

The 3 months correlation between Mondi and GLT is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mondi PLC ADR and GLT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLT Old and Mondi PLC 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 Mondi PLC ADR 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 Mondi PLC i.e., Mondi PLC and GLT Old go up and down completely randomly.

Pair Corralation between Mondi PLC and GLT Old

If you would invest  2,105  in GLT Old on October 10, 2024 and sell it today you would earn a total of  0.00  from holding GLT Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Mondi PLC ADR  vs.  GLT Old

Mondi PLC ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mondi PLC ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company 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 Mondi PLC and GLT Old

The main advantage of trading using opposite Mondi PLC and GLT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondi PLC 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 Mondi PLC ADR 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.