Correlation Between AppHarvest and Minerva SA
Can any of the company-specific risk be diversified away by investing in both AppHarvest and Minerva SA 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 Minerva SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AppHarvest and Minerva SA, you can compare the effects of market volatilities on AppHarvest and Minerva SA 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 Minerva SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppHarvest and Minerva SA.
Diversification Opportunities for AppHarvest and Minerva SA
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AppHarvest and Minerva is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding AppHarvest and Minerva SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerva SA 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 Minerva SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerva SA has no effect on the direction of AppHarvest i.e., AppHarvest and Minerva SA go up and down completely randomly.
Pair Corralation between AppHarvest and Minerva SA
If you would invest 397.00 in Minerva SA on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Minerva SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
AppHarvest vs. Minerva SA
Performance |
| Timeline |
| AppHarvest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Minerva SA |
AppHarvest and Minerva SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AppHarvest and Minerva SA
The main advantage of trading using opposite AppHarvest and Minerva SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppHarvest position performs unexpectedly, Minerva SA 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 Minerva SA will offset losses from the drop in Minerva SA's long position.| AppHarvest vs. Porch Group | AppHarvest vs. Hydrofarm Holdings Group | AppHarvest vs. Danimer Scientific | AppHarvest vs. Open Lending Corp |
| Minerva SA vs. Limoneira Co | Minerva SA vs. Fresh Del Monte | Minerva SA vs. Vital Farms | Minerva SA vs. Alico Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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