Correlation Between Cult Food and MeaTech 3D

Can any of the company-specific risk be diversified away by investing in both Cult Food and MeaTech 3D 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 Cult Food and MeaTech 3D into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cult Food Science and MeaTech 3D, you can compare the effects of market volatilities on Cult Food and MeaTech 3D 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 Cult Food with a short position of MeaTech 3D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cult Food and MeaTech 3D.

Diversification Opportunities for Cult Food and MeaTech 3D

-0.74

Correlation Coefficient

Cult Food  MeaTech 3D

Pay attention - limited upside

The 3 months correlation between Cult and MeaTech is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cult Food Science and MeaTech 3D in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeaTech 3D and Cult Food 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 Cult Food Science are associated (or correlated) with MeaTech 3D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeaTech 3D has no effect on the direction of Cult Food i.e., Cult Food and MeaTech 3D go up and down completely randomly.

Pair Corralation between Cult Food and MeaTech 3D

Assuming the 90 days horizon Cult Food Science is expected to under-perform the MeaTech 3D. In addition to that, Cult Food is 3.0 times more volatile than MeaTech 3D. It trades about -0.02 of its total potential returns per unit of risk. MeaTech 3D is currently generating about 0.09 per unit of volatility. If you would invest  0.25  in MeaTech 3D on September 4, 2025 and sell it today you would earn a total of  0.05  from holding MeaTech 3D or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cult Food Science  vs.  MeaTech 3D

Cult Food Science

Risk-Adjusted Performance

Weakest

Over the last 90 days Cult Food Science has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

MeaTech 3D

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in MeaTech 3D are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, MeaTech 3D reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cult Food and MeaTech 3D

The main advantage of trading using opposite Cult Food and MeaTech 3D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cult Food position performs unexpectedly, MeaTech 3D 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 MeaTech 3D will offset losses from the drop in MeaTech 3D's long position.

The idea behind Cult Food Science and MeaTech 3D 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.