Correlation Between Farmland Partners and Applied UV
Can any of the company-specific risk be diversified away by investing in both Farmland Partners and Applied UV 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 Farmland Partners and Applied UV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farmland Partners and Applied UV Preferred, you can compare the effects of market volatilities on Farmland Partners and Applied UV 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 Farmland Partners with a short position of Applied UV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmland Partners and Applied UV.
Diversification Opportunities for Farmland Partners and Applied UV
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Farmland and Applied is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Farmland Partners and Applied UV Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied UV Preferred and Farmland Partners 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 Farmland Partners are associated (or correlated) with Applied UV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied UV Preferred has no effect on the direction of Farmland Partners i.e., Farmland Partners and Applied UV go up and down completely randomly.
Pair Corralation between Farmland Partners and Applied UV
If you would invest 1,118 in Farmland Partners on October 24, 2024 and sell it today you would earn a total of 53.00 from holding Farmland Partners or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Farmland Partners vs. Applied UV Preferred
Performance |
| Timeline |
| Farmland Partners |
| Applied UV Preferred |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Farmland Partners and Applied UV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farmland Partners and Applied UV
The main advantage of trading using opposite Farmland Partners and Applied UV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmland Partners position performs unexpectedly, Applied UV 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 Applied UV will offset losses from the drop in Applied UV's long position.| Farmland Partners vs. PotlatchDeltic Corp | Farmland Partners vs. Weyerhaeuser | Farmland Partners vs. Outfront Media | Farmland Partners vs. Gaming Leisure Properties |
| Applied UV vs. FAT Brands | Applied UV vs. Cadiz Depositary Shares | Applied UV vs. Atlanticus Holdings Corp | Applied UV vs. Presidio Property Trust |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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