Correlation Between Open Lending and AppHarvest
Can any of the company-specific risk be diversified away by investing in both Open Lending and AppHarvest 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 Open Lending and AppHarvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Open Lending Corp and AppHarvest, you can compare the effects of market volatilities on Open Lending and AppHarvest 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 Open Lending with a short position of AppHarvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Open Lending and AppHarvest.
Diversification Opportunities for Open Lending and AppHarvest
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Open and AppHarvest is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Open Lending Corp and AppHarvest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AppHarvest and Open Lending 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 Open Lending Corp are associated (or correlated) with AppHarvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AppHarvest has no effect on the direction of Open Lending i.e., Open Lending and AppHarvest go up and down completely randomly.
Pair Corralation between Open Lending and AppHarvest
If you would invest 9.00 in AppHarvest on October 26, 2024 and sell it today you would earn a total of 0.00 from holding AppHarvest or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 5.26% |
Values | Daily Returns |
Open Lending Corp vs. AppHarvest
Performance |
Timeline |
Open Lending Corp |
AppHarvest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Open Lending and AppHarvest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Open Lending and AppHarvest
The main advantage of trading using opposite Open Lending and AppHarvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Open Lending position performs unexpectedly, AppHarvest 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 AppHarvest will offset losses from the drop in AppHarvest's long position.Open Lending vs. EZCORP Inc | Open Lending vs. Orix Corp Ads | Open Lending vs. SLM Corp | Open Lending vs. Navient Corp |
AppHarvest vs. Porch Group | AppHarvest vs. Hydrofarm Holdings Group | AppHarvest vs. Danimer Scientific | AppHarvest vs. Open Lending Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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