Correlation Between Suzano Papel and GLT Old

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

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

Diversification Opportunities for Suzano Papel and GLT Old

0.0

Correlation Coefficient

Suzano Papel  GLT Old

Pay attention - limited upside

The 3 months correlation between Suzano and GLT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Suzano Papel e and GLT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLT Old and Suzano Papel 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 Suzano Papel e 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 Suzano Papel i.e., Suzano Papel and GLT Old go up and down completely randomly.

Pair Corralation between Suzano Papel and GLT Old

If you would invest (100.00) in GLT Old on December 17, 2024 and sell it today you would earn a total of  100.00  from holding GLT Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Suzano Papel e  vs.  GLT Old

Suzano Papel e

Risk-Adjusted Performance

Very Weak

Over the last 90 days Suzano Papel e has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

GLT Old

Risk-Adjusted Performance

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 comparatively stable essential indicators, GLT Old is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Suzano Papel and GLT Old

The main advantage of trading using opposite Suzano Papel and GLT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzano Papel 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 Suzano Papel e 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.