Correlation Between Kalera Public and Edible Garden
Can any of the company-specific risk be diversified away by investing in both Kalera Public and Edible Garden 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 Kalera Public and Edible Garden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kalera Public Limited and Edible Garden AG, you can compare the effects of market volatilities on Kalera Public and Edible Garden 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 Kalera Public with a short position of Edible Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kalera Public and Edible Garden.
Diversification Opportunities for Kalera Public and Edible Garden
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kalera and Edible is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kalera Public Limited and Edible Garden AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edible Garden AG and Kalera Public 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 Kalera Public Limited are associated (or correlated) with Edible Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edible Garden AG has no effect on the direction of Kalera Public i.e., Kalera Public and Edible Garden go up and down completely randomly.
Pair Corralation between Kalera Public and Edible Garden
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kalera Public Limited vs. Edible Garden AG
Performance |
| Timeline |
| Kalera Public Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Edible Garden AG |
Kalera Public and Edible Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kalera Public and Edible Garden
The main advantage of trading using opposite Kalera Public and Edible Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kalera Public position performs unexpectedly, Edible Garden 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 Edible Garden will offset losses from the drop in Edible Garden's long position.| Kalera Public vs. Evolution Gaming Group | Kalera Public vs. Westinghouse Air Brake | Kalera Public vs. Boyd Gaming | Kalera Public vs. Finnair Oyj |
| Edible Garden vs. Edible Garden AG | Edible Garden vs. Dermata Therapeutics Warrant | Edible Garden vs. Iveda Solutions Warrant | Edible Garden vs. Aclarion |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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