Correlation Between Edible Garden and Forafric Global
Can any of the company-specific risk be diversified away by investing in both Edible Garden and Forafric Global 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 Forafric Global 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 Forafric Global PLC, you can compare the effects of market volatilities on Edible Garden and Forafric Global 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 Forafric Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edible Garden and Forafric Global.
Diversification Opportunities for Edible Garden and Forafric Global
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Edible and Forafric is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Edible Garden AG and Forafric Global PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forafric Global PLC 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 Forafric Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forafric Global PLC has no effect on the direction of Edible Garden i.e., Edible Garden and Forafric Global go up and down completely randomly.
Pair Corralation between Edible Garden and Forafric Global
Assuming the 90 days horizon Edible Garden AG is expected to generate 58.53 times more return on investment than Forafric Global. However, Edible Garden is 58.53 times more volatile than Forafric Global PLC. It trades about 0.13 of its potential returns per unit of risk. Forafric Global PLC is currently generating about -0.02 per unit of risk. If you would invest 1.97 in Edible Garden AG on January 15, 2025 and sell it today you would earn a total of 2.03 from holding Edible Garden AG or generate 103.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.55% |
| Values | Daily Returns |
Edible Garden AG vs. Forafric Global PLC
Performance |
| Timeline |
| Edible Garden AG |
| Forafric Global PLC |
Edible Garden and Forafric Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edible Garden and Forafric Global
The main advantage of trading using opposite Edible Garden and Forafric Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edible Garden position performs unexpectedly, Forafric Global 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 Forafric Global will offset losses from the drop in Forafric Global's long position.| Edible Garden vs. Edible Garden AG | Edible Garden vs. Dermata Therapeutics Warrant | Edible Garden vs. Iveda Solutions Warrant | Edible Garden vs. Aclarion |
| Forafric Global vs. Forafric Global PLC | Forafric Global vs. GrainCorp Limited | Forafric Global vs. Australian Agricultural | Forafric Global vs. Fresh Del Monte |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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