Correlation Between AgriFORCE Growing and Limoneira

Can any of the company-specific risk be diversified away by investing in both AgriFORCE Growing and Limoneira 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 Limoneira 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 Limoneira Co, you can compare the effects of market volatilities on AgriFORCE Growing and Limoneira 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 Limoneira. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriFORCE Growing and Limoneira.

Diversification Opportunities for AgriFORCE Growing and Limoneira

-0.25

Correlation Coefficient

AgriFORCE Growing  Limoneira

Very good diversification

The 3 months correlation between AgriFORCE and Limoneira is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AgriFORCE Growing Systems and Limoneira Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Limoneira 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 Limoneira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Limoneira has no effect on the direction of AgriFORCE Growing i.e., AgriFORCE Growing and Limoneira go up and down completely randomly.

Pair Corralation between AgriFORCE Growing and Limoneira

If you would invest  2,590  in Limoneira Co on September 15, 2024 and sell it today you would earn a total of  94.00  from holding Limoneira Co or generate 3.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

AgriFORCE Growing Systems  vs.  Limoneira Co

AgriFORCE Growing Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AgriFORCE Growing Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, AgriFORCE Growing is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Limoneira

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Limoneira Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Limoneira is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with AgriFORCE Growing and Limoneira

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

The idea behind AgriFORCE Growing Systems and Limoneira Co 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.