Correlation Between Edible Garden and Duckhorn Portfolio
Can any of the company-specific risk be diversified away by investing in both Edible Garden and Duckhorn Portfolio 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 Duckhorn Portfolio 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 Duckhorn Portfolio, you can compare the effects of market volatilities on Edible Garden and Duckhorn Portfolio 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 Duckhorn Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edible Garden and Duckhorn Portfolio.
Diversification Opportunities for Edible Garden and Duckhorn Portfolio
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edible and Duckhorn is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Edible Garden AG and Duckhorn Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duckhorn Portfolio 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 Duckhorn Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duckhorn Portfolio has no effect on the direction of Edible Garden i.e., Edible Garden and Duckhorn Portfolio go up and down completely randomly.
Pair Corralation between Edible Garden and Duckhorn Portfolio
Given the investment horizon of 90 days Edible Garden AG is expected to under-perform the Duckhorn Portfolio. In addition to that, Edible Garden is 34.59 times more volatile than Duckhorn Portfolio. It trades about -0.06 of its total potential returns per unit of risk. Duckhorn Portfolio is currently generating about 0.06 per unit of volatility. If you would invest 1,096 in Duckhorn Portfolio on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Duckhorn Portfolio or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edible Garden AG vs. Duckhorn Portfolio
Performance |
| Timeline |
| Edible Garden AG |
| Duckhorn Portfolio |
Edible Garden and Duckhorn Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edible Garden and Duckhorn Portfolio
The main advantage of trading using opposite Edible Garden and Duckhorn Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edible Garden position performs unexpectedly, Duckhorn Portfolio 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 Duckhorn Portfolio will offset losses from the drop in Duckhorn Portfolio'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 |
| Duckhorn Portfolio vs. Naked Wines plc | Duckhorn Portfolio vs. Andrew Peller Limited | Duckhorn Portfolio vs. Iconic Brands | Duckhorn Portfolio vs. Naked Wines 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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