Correlation Between Edible Garden and AgriFORCE Growing
Can any of the company-specific risk be diversified away by investing in both Edible Garden and AgriFORCE Growing 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 AgriFORCE Growing 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 AgriFORCE Growing Systems, you can compare the effects of market volatilities on Edible Garden and AgriFORCE Growing 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 AgriFORCE Growing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edible Garden and AgriFORCE Growing.
Diversification Opportunities for Edible Garden and AgriFORCE Growing
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Edible and AgriFORCE is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Edible Garden AG and AgriFORCE Growing Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriFORCE Growing Systems 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 AgriFORCE Growing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriFORCE Growing Systems has no effect on the direction of Edible Garden i.e., Edible Garden and AgriFORCE Growing go up and down completely randomly.
Pair Corralation between Edible Garden and AgriFORCE Growing
Assuming the 90 days horizon Edible Garden AG is expected to generate 11.02 times more return on investment than AgriFORCE Growing. However, Edible Garden is 11.02 times more volatile than AgriFORCE Growing Systems. It trades about 0.13 of its potential returns per unit of risk. AgriFORCE Growing Systems is currently generating about -0.15 per unit of risk. If you would invest 13.00 in Edible Garden AG on November 6, 2024 and sell it today you would lose (9.30) from holding Edible Garden AG or give up 71.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.58% |
| Values | Daily Returns |
Edible Garden AG vs. AgriFORCE Growing Systems
Performance |
| Timeline |
| Edible Garden AG |
| AgriFORCE Growing Systems |
Edible Garden and AgriFORCE Growing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edible Garden and AgriFORCE Growing
The main advantage of trading using opposite Edible Garden and AgriFORCE Growing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edible Garden position performs unexpectedly, AgriFORCE Growing 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 AgriFORCE Growing will offset losses from the drop in AgriFORCE Growing'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 |
| AgriFORCE Growing vs. Limoneira Co | AgriFORCE Growing vs. Forafric Global PLC | AgriFORCE Growing vs. Australian Agricultural | AgriFORCE Growing vs. NaturalShrimp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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