Correlation Between Kalera Public and AquaBounty Technologies

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

Diversification Opportunities for Kalera Public and AquaBounty Technologies

0.0

Correlation Coefficient

Kalera Public  AquaBounty Technologies

Pay attention - limited upside

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

Pair Corralation between Kalera Public and AquaBounty Technologies

If you would invest (100.00) in Kalera Public Limited on September 17, 2024 and sell it today you would earn a total of  100.00  from holding Kalera Public Limited 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

Kalera Public Limited  vs.  AquaBounty Technologies

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 latest stock price agitation, may contribute to short-term losses for the retail investors.

AquaBounty Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AquaBounty Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Kalera Public and AquaBounty Technologies

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

The idea behind Kalera Public Limited and AquaBounty Technologies 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.