Correlation Between AgriFORCE Growing and AquaBounty Technologies
Can any of the company-specific risk be diversified away by investing in both AgriFORCE Growing and AquaBounty Technologies 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 AgriFORCE Growing and AquaBounty Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgriFORCE Growing Systems and AquaBounty Technologies, you can compare the effects of market volatilities on AgriFORCE Growing and AquaBounty Technologies 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 AgriFORCE Growing with a short position of AquaBounty Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriFORCE Growing and AquaBounty Technologies.
Diversification Opportunities for AgriFORCE Growing and AquaBounty Technologies
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AgriFORCE and AquaBounty is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AgriFORCE Growing Systems and AquaBounty Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AquaBounty Technologies and AgriFORCE Growing 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 AgriFORCE Growing Systems are associated (or correlated) with AquaBounty Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AquaBounty Technologies has no effect on the direction of AgriFORCE Growing i.e., AgriFORCE Growing and AquaBounty Technologies go up and down completely randomly.
Pair Corralation between AgriFORCE Growing and AquaBounty Technologies
Given the investment horizon of 90 days AgriFORCE Growing Systems is expected to under-perform the AquaBounty Technologies. In addition to that, AgriFORCE Growing is 1.36 times more volatile than AquaBounty Technologies. It trades about -0.1 of its total potential returns per unit of risk. AquaBounty Technologies is currently generating about -0.07 per unit of volatility. If you would invest 259.00 in AquaBounty Technologies on November 5, 2024 and sell it today you would lose (187.00) from holding AquaBounty Technologies or give up 72.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AgriFORCE Growing Systems vs. AquaBounty Technologies
Performance |
| Timeline |
| AgriFORCE Growing Systems |
| AquaBounty Technologies |
AgriFORCE Growing and AquaBounty Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgriFORCE Growing and AquaBounty Technologies
The main advantage of trading using opposite AgriFORCE Growing and AquaBounty Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriFORCE Growing position performs unexpectedly, AquaBounty Technologies 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 AquaBounty Technologies will offset losses from the drop in AquaBounty Technologies' long position.| AgriFORCE Growing vs. Limoneira Co | AgriFORCE Growing vs. Forafric Global PLC | AgriFORCE Growing vs. Australian Agricultural | AgriFORCE Growing vs. NaturalShrimp |
| AquaBounty Technologies vs. Atlantic Sapphire ASA | AquaBounty Technologies vs. Adecoagro SA | AquaBounty Technologies vs. Local Bounti Corp | AquaBounty Technologies vs. Forafric Global PLC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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