Correlation Between AquaBounty Technologies and Atlantic Sapphire
Can any of the company-specific risk be diversified away by investing in both AquaBounty Technologies 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 AquaBounty Technologies and Atlantic Sapphire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AquaBounty Technologies and Atlantic Sapphire ASA, you can compare the effects of market volatilities on AquaBounty Technologies 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 AquaBounty Technologies with a short position of Atlantic Sapphire. Check out your portfolio center. Please also check ongoing floating volatility patterns of AquaBounty Technologies and Atlantic Sapphire.
Diversification Opportunities for AquaBounty Technologies and Atlantic Sapphire
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AquaBounty and Atlantic is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding AquaBounty Technologies 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 AquaBounty Technologies 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 AquaBounty Technologies 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 AquaBounty Technologies i.e., AquaBounty Technologies and Atlantic Sapphire go up and down completely randomly.
Pair Corralation between AquaBounty Technologies and Atlantic Sapphire
Considering the 90-day investment horizon AquaBounty Technologies is expected to under-perform the Atlantic Sapphire. But the stock apears to be less risky and, when comparing its historical volatility, AquaBounty Technologies is 4.16 times less risky than Atlantic Sapphire. The stock trades about -0.29 of its potential returns per unit of risk. The Atlantic Sapphire ASA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 0.87 in Atlantic Sapphire ASA on August 28, 2024 and sell it today you would lose (0.03) from holding Atlantic Sapphire ASA or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AquaBounty Technologies vs. Atlantic Sapphire ASA
Performance |
| Timeline |
| AquaBounty Technologies |
| Atlantic Sapphire ASA |
AquaBounty Technologies and Atlantic Sapphire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AquaBounty Technologies and Atlantic Sapphire
The main advantage of trading using opposite AquaBounty Technologies and Atlantic Sapphire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AquaBounty Technologies 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.| AquaBounty Technologies vs. Atlantic Sapphire ASA | AquaBounty Technologies vs. Adecoagro SA | AquaBounty Technologies vs. Local Bounti Corp | AquaBounty Technologies vs. Forafric Global PLC |
| Atlantic Sapphire vs. Avi Ltd ADR | Atlantic Sapphire vs. Altavoz Entertainment | Atlantic Sapphire vs. Aryzta AG PK | Atlantic Sapphire vs. Artisan Consumer Goods |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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