Correlation Between AppHarvest and AquaBounty Technologies
Can any of the company-specific risk be diversified away by investing in both AppHarvest 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 AppHarvest and AquaBounty Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AppHarvest and AquaBounty Technologies, you can compare the effects of market volatilities on AppHarvest 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 AppHarvest with a short position of AquaBounty Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppHarvest and AquaBounty Technologies.
Diversification Opportunities for AppHarvest and AquaBounty Technologies
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AppHarvest and AquaBounty is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AppHarvest and AquaBounty Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AquaBounty Technologies 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 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 AppHarvest i.e., AppHarvest and AquaBounty Technologies go up and down completely randomly.
Pair Corralation between AppHarvest and AquaBounty Technologies
If you would invest 9.00 in AppHarvest on September 3, 2024 and sell it today you would earn a total of 0.00 from holding AppHarvest or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
AppHarvest vs. AquaBounty Technologies
Performance |
| Timeline |
| AppHarvest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AquaBounty Technologies |
AppHarvest and AquaBounty Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AppHarvest and AquaBounty Technologies
The main advantage of trading using opposite AppHarvest and AquaBounty Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppHarvest 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.| AppHarvest vs. Porch Group | AppHarvest vs. Hydrofarm Holdings Group | AppHarvest vs. Danimer Scientific | AppHarvest vs. Open Lending Corp |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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