Correlation Between MeaTech 3D and Affinor Growers

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

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

Diversification Opportunities for MeaTech 3D and Affinor Growers

-0.12

Correlation Coefficient

MeaTech 3D  Affinor Growers

Good diversification

The 3 months correlation between MeaTech and Affinor is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding MeaTech 3D and Affinor Growers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affinor Growers and MeaTech 3D 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 MeaTech 3D are associated (or correlated) with Affinor Growers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affinor Growers has no effect on the direction of MeaTech 3D i.e., MeaTech 3D and Affinor Growers go up and down completely randomly.

Pair Corralation between MeaTech 3D and Affinor Growers

Assuming the 90 days horizon MeaTech 3D is expected to generate 1.02 times less return on investment than Affinor Growers. But when comparing it to its historical volatility, MeaTech 3D is 3.65 times less risky than Affinor Growers. It trades about 0.09 of its potential returns per unit of risk. Affinor Growers is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  3.10  in Affinor Growers on August 7, 2025 and sell it today you would lose (1.10) from holding Affinor Growers or give up 35.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

MeaTech 3D  vs.  Affinor Growers

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.

Affinor Growers

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Affinor Growers are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Affinor Growers reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MeaTech 3D and Affinor Growers

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

The idea behind MeaTech 3D and Affinor Growers 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.