Correlation Between Planting Hope and MeaTech 3D

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

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

Diversification Opportunities for Planting Hope and MeaTech 3D

0.0

Correlation Coefficient

Planting Hope  MeaTech 3D

Pay attention - limited upside

The 3 months correlation between Planting and MeaTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Planting Hope and MeaTech 3D in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeaTech 3D and Planting Hope 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 The Planting Hope 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 Planting Hope i.e., Planting Hope and MeaTech 3D go up and down completely randomly.

Pair Corralation between Planting Hope and MeaTech 3D

If you would invest  0.25  in MeaTech 3D on August 11, 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	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

The Planting Hope  vs.  MeaTech 3D

Planting Hope

Risk-Adjusted Performance

Weakest

Over the last 90 days The Planting Hope has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Planting Hope is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

MeaTech 3D

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in MeaTech 3D are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, MeaTech 3D reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Planting Hope and MeaTech 3D

The main advantage of trading using opposite Planting Hope and MeaTech 3D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planting Hope 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 The Planting Hope 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.