Correlation Between Village Farms and AgriFORCE Growing
Can any of the company-specific risk be diversified away by investing in both Village Farms 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 Village Farms and AgriFORCE Growing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Village Farms International and AgriFORCE Growing Systems, you can compare the effects of market volatilities on Village Farms 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 Village Farms with a short position of AgriFORCE Growing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Farms and AgriFORCE Growing.
Diversification Opportunities for Village Farms and AgriFORCE Growing
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Village and AgriFORCE is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Village Farms International 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 Village Farms 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 Village Farms International 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 Village Farms i.e., Village Farms and AgriFORCE Growing go up and down completely randomly.
Pair Corralation between Village Farms and AgriFORCE Growing
Considering the 90-day investment horizon Village Farms International is expected to under-perform the AgriFORCE Growing. But the stock apears to be less risky and, when comparing its historical volatility, Village Farms International is 1.56 times less risky than AgriFORCE Growing. The stock trades about -0.1 of its potential returns per unit of risk. The AgriFORCE Growing Systems is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 265.00 in AgriFORCE Growing Systems on October 26, 2024 and sell it today you would lose (4.00) from holding AgriFORCE Growing Systems or give up 1.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Village Farms International vs. AgriFORCE Growing Systems
Performance |
| Timeline |
| Village Farms Intern |
| AgriFORCE Growing Systems |
Village Farms and AgriFORCE Growing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Village Farms and AgriFORCE Growing
The main advantage of trading using opposite Village Farms and AgriFORCE Growing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Farms 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.| Village Farms vs. NaturalShrimp | Village Farms vs. AgriFORCE Growing Systems | Village Farms vs. Atlantic Sapphire ASA | Village Farms vs. Fresh Del Monte |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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