Correlation Between Fresh Del and AquaBounty Technologies
Can any of the company-specific risk be diversified away by investing in both Fresh Del and AquaBounty Technologies 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 Fresh Del and AquaBounty Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fresh Del Monte and AquaBounty Technologies, you can compare the effects of market volatilities on Fresh Del and AquaBounty Technologies 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 Fresh Del with a short position of AquaBounty Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresh Del and AquaBounty Technologies.
Diversification Opportunities for Fresh Del and AquaBounty Technologies
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fresh and AquaBounty is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fresh Del Monte and AquaBounty Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AquaBounty Technologies and Fresh Del 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 Fresh Del Monte are associated (or correlated) with AquaBounty Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AquaBounty Technologies has no effect on the direction of Fresh Del i.e., Fresh Del and AquaBounty Technologies go up and down completely randomly.
Pair Corralation between Fresh Del and AquaBounty Technologies
Considering the 90-day investment horizon Fresh Del Monte is expected to under-perform the AquaBounty Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Fresh Del Monte is 5.0 times less risky than AquaBounty Technologies. The stock trades about -0.27 of its potential returns per unit of risk. The AquaBounty Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 76.00 in AquaBounty Technologies on October 26, 2024 and sell it today you would earn a total of 14.00 from holding AquaBounty Technologies or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fresh Del Monte vs. AquaBounty Technologies
Performance |
| Timeline |
| Fresh Del Monte |
| AquaBounty Technologies |
Fresh Del and AquaBounty Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresh Del and AquaBounty Technologies
The main advantage of trading using opposite Fresh Del and AquaBounty Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresh Del position performs unexpectedly, AquaBounty Technologies 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 AquaBounty Technologies will offset losses from the drop in AquaBounty Technologies' long position.| Fresh Del vs. Alico Inc | Fresh Del vs. SW Seed Company | Fresh Del vs. Adecoagro SA | Fresh Del vs. Brasilagro Adr |
| AquaBounty Technologies vs. Atlantic Sapphire ASA | AquaBounty Technologies vs. Adecoagro SA | AquaBounty Technologies vs. Local Bounti Corp | AquaBounty Technologies vs. Forafric Global 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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