Correlation Between AquaBounty Technologies and Above Food
Can any of the company-specific risk be diversified away by investing in both AquaBounty Technologies and Above Food 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 Above Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AquaBounty Technologies and Above Food Ingredients, you can compare the effects of market volatilities on AquaBounty Technologies and Above Food 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 Above Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of AquaBounty Technologies and Above Food.
Diversification Opportunities for AquaBounty Technologies and Above Food
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AquaBounty and Above is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AquaBounty Technologies and Above Food Ingredients in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Above Food Ingredients 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 Above Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Above Food Ingredients has no effect on the direction of AquaBounty Technologies i.e., AquaBounty Technologies and Above Food go up and down completely randomly.
Pair Corralation between AquaBounty Technologies and Above Food
Considering the 90-day investment horizon AquaBounty Technologies is expected to under-perform the Above Food. But the stock apears to be less risky and, when comparing its historical volatility, AquaBounty Technologies is 11.01 times less risky than Above Food. The stock trades about -0.29 of its potential returns per unit of risk. The Above Food Ingredients is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1.51 in Above Food Ingredients on August 28, 2024 and sell it today you would earn a total of 0.49 from holding Above Food Ingredients or generate 32.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AquaBounty Technologies vs. Above Food Ingredients
Performance |
| Timeline |
| AquaBounty Technologies |
| Above Food Ingredients |
AquaBounty Technologies and Above Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AquaBounty Technologies and Above Food
The main advantage of trading using opposite AquaBounty Technologies and Above Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AquaBounty Technologies position performs unexpectedly, Above Food 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 Above Food will offset losses from the drop in Above Food'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 |
| Above Food vs. Borealis Foods | Above Food vs. CIMG Inc | Above Food vs. Mamas Creations | Above Food vs. Natural Alternatives International |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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