Correlation Between Edible Garden and Aclarion
Can any of the company-specific risk be diversified away by investing in both Edible Garden and Aclarion 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 Aclarion 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 Aclarion, you can compare the effects of market volatilities on Edible Garden and Aclarion 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 Aclarion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edible Garden and Aclarion.
Diversification Opportunities for Edible Garden and Aclarion
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Edible and Aclarion is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Edible Garden AG and Aclarion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aclarion 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 Aclarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aclarion has no effect on the direction of Edible Garden i.e., Edible Garden and Aclarion go up and down completely randomly.
Pair Corralation between Edible Garden and Aclarion
Assuming the 90 days horizon Edible Garden AG is expected to generate 5.3 times more return on investment than Aclarion. However, Edible Garden is 5.3 times more volatile than Aclarion. It trades about 0.18 of its potential returns per unit of risk. Aclarion is currently generating about 0.03 per unit of risk. If you would invest 1.06 in Edible Garden AG on August 26, 2024 and sell it today you would earn a total of 0.44 from holding Edible Garden AG or generate 41.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Edible Garden AG vs. Aclarion
Performance |
| Timeline |
| Edible Garden AG |
| Aclarion |
Edible Garden and Aclarion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edible Garden and Aclarion
The main advantage of trading using opposite Edible Garden and Aclarion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edible Garden position performs unexpectedly, Aclarion 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 Aclarion will offset losses from the drop in Aclarion's long position.| Edible Garden vs. Edible Garden AG | Edible Garden vs. Iveda Solutions Warrant | Edible Garden vs. Aclarion |
| Aclarion vs. EUDA Health Holdings | Aclarion vs. FOXO Technologies | Aclarion vs. Healthcare Triangle | Aclarion vs. Mangoceuticals, Common Stock |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets |