Correlation Between AquaBounty Technologies and AgriFORCE Growing
Can any of the company-specific risk be diversified away by investing in both AquaBounty Technologies and AgriFORCE Growing 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 AgriFORCE Growing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AquaBounty Technologies and AgriFORCE Growing Systems, you can compare the effects of market volatilities on AquaBounty Technologies and AgriFORCE Growing 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 AgriFORCE Growing. Check out your portfolio center. Please also check ongoing floating volatility patterns of AquaBounty Technologies and AgriFORCE Growing.
Diversification Opportunities for AquaBounty Technologies and AgriFORCE Growing
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AquaBounty and AgriFORCE is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AquaBounty Technologies and AgriFORCE Growing Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriFORCE Growing Systems 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 AgriFORCE Growing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriFORCE Growing Systems has no effect on the direction of AquaBounty Technologies i.e., AquaBounty Technologies and AgriFORCE Growing go up and down completely randomly.
Pair Corralation between AquaBounty Technologies and AgriFORCE Growing
Considering the 90-day investment horizon AquaBounty Technologies is expected to generate 0.74 times more return on investment than AgriFORCE Growing. However, AquaBounty Technologies is 1.36 times less risky than AgriFORCE Growing. It trades about -0.07 of its potential returns per unit of risk. AgriFORCE Growing Systems is currently generating about -0.1 per unit of risk. If you would invest 259.00 in AquaBounty Technologies on November 5, 2024 and sell it today you would lose (187.00) from holding AquaBounty Technologies or give up 72.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AquaBounty Technologies vs. AgriFORCE Growing Systems
Performance |
| Timeline |
| AquaBounty Technologies |
| AgriFORCE Growing Systems |
AquaBounty Technologies and AgriFORCE Growing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AquaBounty Technologies and AgriFORCE Growing
The main advantage of trading using opposite AquaBounty Technologies and AgriFORCE Growing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AquaBounty Technologies position performs unexpectedly, AgriFORCE Growing 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 AgriFORCE Growing will offset losses from the drop in AgriFORCE Growing'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 |
| AgriFORCE Growing vs. Limoneira Co | AgriFORCE Growing vs. Forafric Global PLC | AgriFORCE Growing vs. Australian Agricultural | AgriFORCE Growing vs. NaturalShrimp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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