Correlation Between AppHarvest and Dole PLC

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

Diversification Opportunities for AppHarvest and Dole PLC

AppHarvestDoleDiversified AwayAppHarvestDoleDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AppHarvest and Dole is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AppHarvest and Dole PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dole PLC 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 Dole PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dole PLC has no effect on the direction of AppHarvest i.e., AppHarvest and Dole PLC go up and down completely randomly.

Pair Corralation between AppHarvest and Dole PLC

If you would invest  1,381  in Dole PLC on November 27, 2024 and sell it today you would earn a total of  24.00  from holding Dole PLC or generate 1.74% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

AppHarvest  vs.  Dole PLC

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-505
JavaScript chart by amCharts 3.21.15APPH DOLE
       Timeline  
AppHarvest 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days AppHarvest has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, AppHarvest is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.
Dole PLC 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Dole PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Dole PLC is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb12.51313.51414.51515.5

AppHarvest and Dole PLC Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.050.100.150.20
JavaScript chart by amCharts 3.21.15APPH DOLE
       Returns  

Pair Trading with AppHarvest and Dole PLC

The main advantage of trading using opposite AppHarvest and Dole PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppHarvest position performs unexpectedly, Dole PLC 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 Dole PLC will offset losses from the drop in Dole PLC's long position.
The idea behind AppHarvest and Dole PLC 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.
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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