Correlation Between Edible Garden and Mission Produce
Can any of the company-specific risk be diversified away by investing in both Edible Garden and Mission Produce 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 Edible Garden and Mission Produce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edible Garden AG and Mission Produce, you can compare the effects of market volatilities on Edible Garden and Mission Produce 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 Edible Garden with a short position of Mission Produce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edible Garden and Mission Produce.
Diversification Opportunities for Edible Garden and Mission Produce
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Edible and Mission is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Edible Garden AG and Mission Produce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mission Produce and Edible Garden 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 Edible Garden AG are associated (or correlated) with Mission Produce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mission Produce has no effect on the direction of Edible Garden i.e., Edible Garden and Mission Produce go up and down completely randomly.
Pair Corralation between Edible Garden and Mission Produce
Given the investment horizon of 90 days Edible Garden AG is expected to under-perform the Mission Produce. In addition to that, Edible Garden is 2.99 times more volatile than Mission Produce. It trades about -0.12 of its total potential returns per unit of risk. Mission Produce is currently generating about 0.12 per unit of volatility. If you would invest 1,214 in Mission Produce on August 24, 2024 and sell it today you would earn a total of 85.00 from holding Mission Produce or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Edible Garden AG vs. Mission Produce
Performance |
| Timeline |
| Edible Garden AG |
| Mission Produce |
Edible Garden and Mission Produce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edible Garden and Mission Produce
The main advantage of trading using opposite Edible Garden and Mission Produce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edible Garden position performs unexpectedly, Mission Produce 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 Mission Produce will offset losses from the drop in Mission Produce's long position.| Edible Garden vs. Golden Agri Resources | Edible Garden vs. Vital Farms | Edible Garden vs. Local Bounti Corp | Edible Garden vs. Fresh Del Monte |
| Mission Produce vs. The Chefs Warehouse | Mission Produce vs. The Andersons | Mission Produce vs. AMCON Distributing | Mission Produce vs. Performance Food Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |