Correlation Between AppHarvest and Fresh Del

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

By analyzing existing cross correlation between AppHarvest and Fresh Del Monte, you can compare the effects of market volatilities on AppHarvest and Fresh Del 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 AppHarvest with a short position of Fresh Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppHarvest and Fresh Del.

Diversification Opportunities for AppHarvest and Fresh Del

0.0

Correlation Coefficient

AppHarvest  Fresh Del

Pay attention - limited upside

The 3 months correlation between AppHarvest and Fresh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AppHarvest and Fresh Del Monte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresh Del Monte and AppHarvest 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 AppHarvest are associated (or correlated) with Fresh Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresh Del Monte has no effect on the direction of AppHarvest i.e., AppHarvest and Fresh Del go up and down completely randomly.

Pair Corralation between AppHarvest and Fresh Del

If you would invest (100.00) in AppHarvest on December 29, 2024 and sell it today you would earn a total of  100.00  from holding AppHarvest or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AppHarvest  vs.  Fresh Del Monte

AppHarvest

Risk-Adjusted Performance

Very Weak

Over the last 90 days AppHarvest has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, AppHarvest is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Fresh Del Monte

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fresh Del Monte has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with AppHarvest and Fresh Del

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

The idea behind AppHarvest and Fresh Del Monte 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.