Correlation Between Edible Garden and Via Renewables
Can any of the company-specific risk be diversified away by investing in both Edible Garden and Via Renewables 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 Via Renewables 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 Via Renewables, you can compare the effects of market volatilities on Edible Garden and Via Renewables 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 Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edible Garden and Via Renewables.
Diversification Opportunities for Edible Garden and Via Renewables
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edible and Via is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Edible Garden AG and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables 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 Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Edible Garden i.e., Edible Garden and Via Renewables go up and down completely randomly.
Pair Corralation between Edible Garden and Via Renewables
Given the investment horizon of 90 days Edible Garden AG is expected to under-perform the Via Renewables. In addition to that, Edible Garden is 3.31 times more volatile than Via Renewables. It trades about -0.08 of its total potential returns per unit of risk. Via Renewables is currently generating about 0.07 per unit of volatility. If you would invest 1,060 in Via Renewables on January 9, 2025 and sell it today you would earn a total of 1,222 from holding Via Renewables or generate 115.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Edible Garden AG vs. Via Renewables
Performance |
| Timeline |
| Edible Garden AG |
| Via Renewables |
Edible Garden and Via Renewables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edible Garden and Via Renewables
The main advantage of trading using opposite Edible Garden and Via Renewables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edible Garden position performs unexpectedly, Via Renewables 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 Via Renewables will offset losses from the drop in Via Renewables' 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 |
| Via Renewables vs. CMS Energy | Via Renewables vs. ACRES Commercial Realty | Via Renewables vs. Atlanticus Holdings Corp | Via Renewables vs. Aquagold 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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