Correlation Between Edible Garden and Archer Daniels

Can any of the company-specific risk be diversified away by investing in both Edible Garden and Archer Daniels 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 Edible Garden and Archer Daniels into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Edible Garden AG and Archer Daniels Midland, you can compare the effects of market volatilities on Edible Garden and Archer Daniels 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 Edible Garden with a short position of Archer Daniels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edible Garden and Archer Daniels.

Diversification Opportunities for Edible Garden and Archer Daniels

-0.82

Correlation Coefficient

Edible Garden  Archer Daniels

Pay attention - limited upside

The 3 months correlation between Edible and Archer is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Edible Garden AG and Archer Daniels Midland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archer Daniels Midland and Edible Garden 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 Edible Garden AG are associated (or correlated) with Archer Daniels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archer Daniels Midland has no effect on the direction of Edible Garden i.e., Edible Garden and Archer Daniels go up and down completely randomly.

Pair Corralation between Edible Garden and Archer Daniels

Given the investment horizon of 90 days Edible Garden AG is expected to under-perform the Archer Daniels. In addition to that, Edible Garden is 2.86 times more volatile than Archer Daniels Midland. It trades about -0.11 of its total potential returns per unit of risk. Archer Daniels Midland is currently generating about 0.16 per unit of volatility. If you would invest  5,429  in Archer Daniels Midland on July 27, 2025 and sell it today you would earn a total of  904.00  from holding Archer Daniels Midland or generate 16.65% return on investment over 90 days.

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

Edible Garden AG  vs.  Archer Daniels Midland

Edible Garden AG

Risk-Adjusted Performance

Weakest

Over the last 90 days Edible Garden AG 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 drivers remain quite persistent which may send shares a bit higher in November 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Archer Daniels Midland

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Archer Daniels Midland are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental indicators, Archer Daniels displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Edible Garden and Archer Daniels

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

The idea behind Edible Garden AG and Archer Daniels Midland 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.