Correlation Between Kalera Public and Atlantic Sapphire

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

By analyzing existing cross correlation between Kalera Public Limited and Atlantic Sapphire ASA, you can compare the effects of market volatilities on Kalera Public and Atlantic Sapphire 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 Kalera Public with a short position of Atlantic Sapphire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kalera Public and Atlantic Sapphire.

Diversification Opportunities for Kalera Public and Atlantic Sapphire

0.0

Correlation Coefficient

Kalera Public  Atlantic Sapphire

Pay attention - limited upside

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

Pair Corralation between Kalera Public and Atlantic Sapphire

If you would invest  2.98  in Atlantic Sapphire ASA on September 18, 2024 and sell it today you would lose (2.06) from holding Atlantic Sapphire ASA or give up 69.13% of portfolio value over 90 days.

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

Kalera Public Limited  vs.  Atlantic Sapphire ASA

Kalera Public Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kalera Public Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Kalera Public is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Atlantic Sapphire ASA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atlantic Sapphire ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak basic indicators, Atlantic Sapphire reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kalera Public and Atlantic Sapphire

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

The idea behind Kalera Public Limited and Atlantic Sapphire ASA 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 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.