Correlation Between AgriFORCE Growing and Village Farms
Can any of the company-specific risk be diversified away by investing in both AgriFORCE Growing and Village Farms 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 Village Farms 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 Village Farms International, you can compare the effects of market volatilities on AgriFORCE Growing and Village Farms 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 Village Farms. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriFORCE Growing and Village Farms.
Diversification Opportunities for AgriFORCE Growing and Village Farms
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AgriFORCE and Village is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding AgriFORCE Growing Systems and Village Farms International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Village Farms Intern 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 Village Farms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Village Farms Intern has no effect on the direction of AgriFORCE Growing i.e., AgriFORCE Growing and Village Farms go up and down completely randomly.
Pair Corralation between AgriFORCE Growing and Village Farms
Given the investment horizon of 90 days AgriFORCE Growing Systems is expected to under-perform the Village Farms. In addition to that, AgriFORCE Growing is 1.03 times more volatile than Village Farms International. It trades about -0.47 of its total potential returns per unit of risk. Village Farms International is currently generating about -0.13 per unit of volatility. If you would invest 90.00 in Village Farms International on August 29, 2024 and sell it today you would lose (12.00) from holding Village Farms International or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AgriFORCE Growing Systems vs. Village Farms International
Performance |
| Timeline |
| AgriFORCE Growing Systems |
| Village Farms Intern |
AgriFORCE Growing and Village Farms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgriFORCE Growing and Village Farms
The main advantage of trading using opposite AgriFORCE Growing and Village Farms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriFORCE Growing position performs unexpectedly, Village Farms 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 Village Farms will offset losses from the drop in Village Farms' long position.| AgriFORCE Growing vs. Limoneira Co | AgriFORCE Growing vs. Forafric Global PLC | AgriFORCE Growing vs. Australian Agricultural | AgriFORCE Growing vs. NaturalShrimp |
| Village Farms vs. Lancaster Colony | Village Farms vs. Treehouse Foods | Village Farms vs. John B Sanfilippo | Village Farms vs. Seneca Foods 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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