Correlation Between AppHarvest and Atlantic Sapphire
Can any of the company-specific risk be diversified away by investing in both AppHarvest and Atlantic Sapphire 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 AppHarvest and Atlantic Sapphire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AppHarvest and Atlantic Sapphire ASA, you can compare the effects of market volatilities on AppHarvest and Atlantic Sapphire 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 AppHarvest with a short position of Atlantic Sapphire. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppHarvest and Atlantic Sapphire.
Diversification Opportunities for AppHarvest and Atlantic Sapphire
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between AppHarvest and Atlantic is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding AppHarvest and Atlantic Sapphire ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Sapphire ASA and AppHarvest 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 AppHarvest are associated (or correlated) with Atlantic Sapphire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Sapphire ASA has no effect on the direction of AppHarvest i.e., AppHarvest and Atlantic Sapphire go up and down completely randomly.
Pair Corralation between AppHarvest and Atlantic Sapphire
If you would invest 238.00 in Atlantic Sapphire ASA on October 26, 2024 and sell it today you would lose (98.00) from holding Atlantic Sapphire ASA or give up 41.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
AppHarvest vs. Atlantic Sapphire ASA
Performance |
| Timeline |
| AppHarvest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Atlantic Sapphire ASA |
AppHarvest and Atlantic Sapphire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AppHarvest and Atlantic Sapphire
The main advantage of trading using opposite AppHarvest and Atlantic Sapphire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppHarvest position performs unexpectedly, Atlantic Sapphire 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 Atlantic Sapphire will offset losses from the drop in Atlantic Sapphire's long position.| AppHarvest vs. Porch Group | AppHarvest vs. Hydrofarm Holdings Group | AppHarvest vs. Danimer Scientific | AppHarvest vs. Open Lending Corp |
| Atlantic Sapphire vs. Forafric Global PLC | Atlantic Sapphire vs. Forafric Global PLC | Atlantic Sapphire vs. GrainCorp Limited | Atlantic Sapphire vs. Australian Agricultural |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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