Correlation Between Dingdong Limited and Forafric Global

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

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

Diversification Opportunities for Dingdong Limited and Forafric Global

-0.71

Correlation Coefficient

Dingdong Limited  Forafric Global

Pay attention - limited upside

The 3 months correlation between Dingdong and Forafric is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dingdong Limited ADR 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 Dingdong Limited 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 Dingdong Limited ADR 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 Dingdong Limited i.e., Dingdong Limited and Forafric Global go up and down completely randomly.

Pair Corralation between Dingdong Limited and Forafric Global

Considering the 90-day investment horizon Dingdong Limited ADR is expected to under-perform the Forafric Global. In addition to that, Dingdong Limited is 1.26 times more volatile than Forafric Global PLC. It trades about -0.13 of its total potential returns per unit of risk. Forafric Global PLC is currently generating about 0.07 per unit of volatility. If you would invest  873.00  in Forafric Global PLC on August 24, 2025 and sell it today you would earn a total of  76.00  from holding Forafric Global PLC or generate 8.71% return on investment over 90 days.

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

Dingdong Limited ADR  vs.  Forafric Global PLC

Dingdong Limited ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days Dingdong Limited ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Forafric Global PLC

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Forafric Global PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Forafric Global may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Dingdong Limited and Forafric Global

The main advantage of trading using opposite Dingdong Limited and Forafric Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dingdong Limited 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 Dingdong Limited ADR 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.