Correlation Between Plantify Foods and Global Crossing

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Can any of the company-specific risk be diversified away by investing in both Plantify Foods and Global Crossing 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 Plantify Foods and Global Crossing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plantify Foods and Global Crossing Airlines, you can compare the effects of market volatilities on Plantify Foods and Global Crossing 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 Plantify Foods with a short position of Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plantify Foods and Global Crossing.

Diversification Opportunities for Plantify Foods and Global Crossing

0.2
  Correlation Coefficient

Modest diversification

The 3 months correlation between Plantify and Global is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Plantify Foods and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines and Plantify Foods 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 Plantify Foods are associated (or correlated) with Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Plantify Foods i.e., Plantify Foods and Global Crossing go up and down completely randomly.

Pair Corralation between Plantify Foods and Global Crossing

Assuming the 90 days trading horizon Plantify Foods is expected to under-perform the Global Crossing. In addition to that, Plantify Foods is 1.11 times more volatile than Global Crossing Airlines. It trades about -0.03 of its total potential returns per unit of risk. Global Crossing Airlines is currently generating about 0.0 per unit of volatility. If you would invest  91.00  in Global Crossing Airlines on September 6, 2025 and sell it today you would lose (4.00) from holding Global Crossing Airlines or give up 4.4% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

Plantify Foods  vs.  Global Crossing Airlines

 Performance 
       Timeline  
Plantify Foods 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Plantify Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.
Global Crossing Airlines 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Global Crossing Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Global Crossing is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Plantify Foods and Global Crossing Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Plantify Foods and Global Crossing

The main advantage of trading using opposite Plantify Foods and Global Crossing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plantify Foods position performs unexpectedly, Global Crossing 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 Global Crossing will offset losses from the drop in Global Crossing's long position.
The idea behind Plantify Foods and Global Crossing Airlines 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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