Correlation Between Raytech Holding and Forafric Global

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

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

Diversification Opportunities for Raytech Holding and Forafric Global

-0.69

Correlation Coefficient

Raytech Holding  Forafric Global

Excellent diversification

The 3 months correlation between Raytech and Forafric is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Raytech Holding Limited 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 Raytech Holding 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 Raytech Holding Limited 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 Raytech Holding i.e., Raytech Holding and Forafric Global go up and down completely randomly.

Pair Corralation between Raytech Holding and Forafric Global

Considering the 90-day investment horizon Raytech Holding Limited is expected to under-perform the Forafric Global. In addition to that, Raytech Holding is 4.65 times more volatile than Forafric Global PLC. It trades about -0.24 of its total potential returns per unit of risk. Forafric Global PLC is currently generating about 0.12 per unit of volatility. If you would invest  780.00  in Forafric Global PLC on August 11, 2025 and sell it today you would earn a total of  161.00  from holding Forafric Global PLC or generate 20.64% return on investment over 90 days.

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

Raytech Holding Limited  vs.  Forafric Global PLC

Raytech Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Raytech Holding Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Forafric Global PLC

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Forafric Global PLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Forafric Global demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Raytech Holding and Forafric Global

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

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.