Correlation Between Global Clean and AgriFORCE Growing
Can any of the company-specific risk be diversified away by investing in both Global Clean 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 Global Clean and AgriFORCE Growing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Clean Energy and AgriFORCE Growing Systems, you can compare the effects of market volatilities on Global Clean 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 Global Clean with a short position of AgriFORCE Growing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Clean and AgriFORCE Growing.
Diversification Opportunities for Global Clean and AgriFORCE Growing
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and AgriFORCE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Global Clean Energy 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 Global Clean 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 Global Clean Energy 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 Global Clean i.e., Global Clean and AgriFORCE Growing go up and down completely randomly.
Pair Corralation between Global Clean and AgriFORCE Growing
Given the investment horizon of 90 days Global Clean Energy is expected to under-perform the AgriFORCE Growing. In addition to that, Global Clean is 1.14 times more volatile than AgriFORCE Growing Systems. It trades about -0.21 of its total potential returns per unit of risk. AgriFORCE Growing Systems is currently generating about -0.1 per unit of volatility. If you would invest 248.00 in AgriFORCE Growing Systems on November 6, 2024 and sell it today you would lose (32.00) from holding AgriFORCE Growing Systems or give up 12.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Global Clean Energy vs. AgriFORCE Growing Systems
Performance |
| Timeline |
| Global Clean Energy |
| AgriFORCE Growing Systems |
Global Clean and AgriFORCE Growing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Clean and AgriFORCE Growing
The main advantage of trading using opposite Global Clean and AgriFORCE Growing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Clean 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.| Global Clean vs. Edible Garden AG | Global Clean vs. Golden Agri Resources | Global Clean vs. Local Bounti Corp | Global Clean vs. Village Farms International |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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