Correlation Between AquaBounty Technologies and AppHarvest
Can any of the company-specific risk be diversified away by investing in both AquaBounty Technologies and AppHarvest 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 AppHarvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AquaBounty Technologies and AppHarvest, you can compare the effects of market volatilities on AquaBounty Technologies and AppHarvest 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 AppHarvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of AquaBounty Technologies and AppHarvest.
Diversification Opportunities for AquaBounty Technologies and AppHarvest
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AquaBounty and AppHarvest is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AquaBounty Technologies and AppHarvest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AppHarvest 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 AppHarvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AppHarvest has no effect on the direction of AquaBounty Technologies i.e., AquaBounty Technologies and AppHarvest go up and down completely randomly.
Pair Corralation between AquaBounty Technologies and AppHarvest
If you would invest 9.00 in AppHarvest on November 5, 2024 and sell it today you would earn a total of 0.00 from holding AppHarvest or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.41% |
| Values | Daily Returns |
AquaBounty Technologies vs. AppHarvest
Performance |
| Timeline |
| AquaBounty Technologies |
| AppHarvest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AquaBounty Technologies and AppHarvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AquaBounty Technologies and AppHarvest
The main advantage of trading using opposite AquaBounty Technologies and AppHarvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AquaBounty Technologies position performs unexpectedly, AppHarvest 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 AppHarvest will offset losses from the drop in AppHarvest'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 |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |