Correlation Between AgriFORCE Growing and Alico

Can any of the company-specific risk be diversified away by investing in both AgriFORCE Growing and Alico 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 AgriFORCE Growing and Alico into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AgriFORCE Growing Systems and Alico Inc, you can compare the effects of market volatilities on AgriFORCE Growing and Alico 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 AgriFORCE Growing with a short position of Alico. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriFORCE Growing and Alico.

Diversification Opportunities for AgriFORCE Growing and Alico

-0.05

Correlation Coefficient

AgriFORCE Growing  Alico

Good diversification

The 3 months correlation between AgriFORCE and Alico is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding AgriFORCE Growing Systems and Alico Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alico Inc and AgriFORCE Growing 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 AgriFORCE Growing Systems are associated (or correlated) with Alico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alico Inc has no effect on the direction of AgriFORCE Growing i.e., AgriFORCE Growing and Alico go up and down completely randomly.

Pair Corralation between AgriFORCE Growing and Alico

Given the investment horizon of 90 days AgriFORCE Growing Systems is expected to under-perform the Alico. In addition to that, AgriFORCE Growing is 1.85 times more volatile than Alico Inc. It trades about -0.16 of its total potential returns per unit of risk. Alico Inc is currently generating about 0.08 per unit of volatility. If you would invest  2,578  in Alico Inc on December 26, 2024 and sell it today you would earn a total of  347.00  from holding Alico Inc or generate 13.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AgriFORCE Growing Systems  vs.  Alico Inc

AgriFORCE Growing Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days AgriFORCE Growing Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Alico Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Alico Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Alico displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AgriFORCE Growing and Alico

The main advantage of trading using opposite AgriFORCE Growing and Alico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriFORCE Growing position performs unexpectedly, Alico 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 Alico will offset losses from the drop in Alico's long position.

The idea behind AgriFORCE Growing Systems and Alico Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.