Correlation Between American Tower and Forafric Global

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

By analyzing existing cross correlation between American Tower Corp and Forafric Global PLC, you can compare the effects of market volatilities on American Tower and Forafric Global 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 American Tower with a short position of Forafric Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Tower and Forafric Global.

Diversification Opportunities for American Tower and Forafric Global

-0.35

Correlation Coefficient

American Tower  Forafric Global

Very good diversification

The 3 months correlation between American and Forafric is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding American Tower Corp and Forafric Global PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forafric Global PLC and American Tower 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 American Tower Corp are associated (or correlated) with Forafric Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forafric Global PLC has no effect on the direction of American Tower i.e., American Tower and Forafric Global go up and down completely randomly.

Pair Corralation between American Tower and Forafric Global

Considering the 90-day investment horizon American Tower Corp is expected to under-perform the Forafric Global. In addition to that, American Tower is 2.26 times more volatile than Forafric Global PLC. It trades about -0.04 of its total potential returns per unit of risk. Forafric Global PLC is currently generating about -0.02 per unit of volatility. If you would invest  778.00  in Forafric Global PLC on May 6, 2025 and sell it today you would lose (6.00) from holding Forafric Global PLC or give up 0.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

American Tower Corp  vs.  Forafric Global PLC

American Tower Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days American Tower Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, American Tower is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Forafric Global PLC

Risk-Adjusted Performance

Very Weak

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

Pair Trading with American Tower and Forafric Global

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

The idea behind American Tower Corp and Forafric Global PLC 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.