Correlation Between Village Farms and GLG Life
Can any of the company-specific risk be diversified away by investing in both Village Farms 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 Village Farms and GLG Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Village Farms International and GLG Life Tech, you can compare the effects of market volatilities on Village Farms 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 Village Farms with a short position of GLG Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Farms and GLG Life.
Diversification Opportunities for Village Farms and GLG Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Village and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Village Farms International 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 Village Farms 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 Village Farms International 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 Village Farms i.e., Village Farms and GLG Life go up and down completely randomly.
Pair Corralation between Village Farms and GLG Life
If you would invest (100.00) in GLG Life Tech on December 18, 2024 and sell it today you would earn a total of 100.00 from holding GLG Life Tech 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 |
Village Farms International vs. GLG Life Tech
Performance |
Timeline |
Village Farms Intern |
GLG Life Tech |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Village Farms and GLG Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Village Farms and GLG Life
The main advantage of trading using opposite Village Farms and GLG Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Farms 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.Village Farms vs. NaturalShrimp | Village Farms vs. AgriFORCE Growing Systems | Village Farms vs. Atlantic Sapphire ASA | Village Farms vs. Fresh Del Monte |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |