Correlation Between Kalera Public and AppHarvest

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

Diversification Opportunities for Kalera Public and AppHarvest

0.0

Correlation Coefficient

Kalera Public  AppHarvest

Pay attention - limited upside

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

Pair Corralation between Kalera Public and AppHarvest

If you would invest  9.00  in AppHarvest on September 12, 2024 and sell it today you would earn a total of  0.00  from holding AppHarvest or generate 0.0% return on investment over 90 days.

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

Kalera Public Limited  vs.  AppHarvest

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.

AppHarvest

Risk-Adjusted Performance

0 of 100

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 recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Kalera Public and AppHarvest

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

The idea behind Kalera Public Limited and AppHarvest 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.