Correlation Between Planet Green and Above Food
Can any of the company-specific risk be diversified away by investing in both Planet Green and Above Food 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 Planet Green and Above Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Green Holdings and Above Food Ingredients, you can compare the effects of market volatilities on Planet Green and Above Food 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 Planet Green with a short position of Above Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Green and Above Food.
Diversification Opportunities for Planet Green and Above Food
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Planet and Above is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Planet Green Holdings and Above Food Ingredients in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Above Food Ingredients and Planet Green 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 Planet Green Holdings are associated (or correlated) with Above Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Above Food Ingredients has no effect on the direction of Planet Green i.e., Planet Green and Above Food go up and down completely randomly.
Pair Corralation between Planet Green and Above Food
Given the investment horizon of 90 days Planet Green is expected to generate 20.96 times less return on investment than Above Food. But when comparing it to its historical volatility, Planet Green Holdings is 3.04 times less risky than Above Food. It trades about 0.01 of its potential returns per unit of risk. Above Food Ingredients is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5.50 in Above Food Ingredients on August 28, 2024 and sell it today you would lose (3.50) from holding Above Food Ingredients or give up 63.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.72% |
| Values | Daily Returns |
Planet Green Holdings vs. Above Food Ingredients
Performance |
| Timeline |
| Planet Green Holdings |
| Above Food Ingredients |
Planet Green and Above Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Green and Above Food
The main advantage of trading using opposite Planet Green and Above Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Green position performs unexpectedly, Above Food 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 Above Food will offset losses from the drop in Above Food's long position.| Planet Green vs. Bit Origin | Planet Green vs. Laird Superfood | Planet Green vs. Stryve Foods | Planet Green vs. Aquagold International |
| Above Food vs. Borealis Foods | Above Food vs. CIMG Inc | Above Food vs. Mamas Creations | Above Food vs. Natural Alternatives International |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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