Correlation Between Arcadia Biosciences and IT Tech

Can any of the company-specific risk be diversified away by investing in both Arcadia Biosciences and IT Tech 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 Arcadia Biosciences and IT Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Arcadia Biosciences and IT Tech Packaging, you can compare the effects of market volatilities on Arcadia Biosciences and IT Tech 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 Arcadia Biosciences with a short position of IT Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcadia Biosciences and IT Tech.

Diversification Opportunities for Arcadia Biosciences and IT Tech

-0.16

Correlation Coefficient

Arcadia Biosciences  IT Tech

Good diversification

The 3 months correlation between Arcadia and ITP is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Arcadia Biosciences and IT Tech Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IT Tech Packaging and Arcadia Biosciences 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 Arcadia Biosciences are associated (or correlated) with IT Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IT Tech Packaging has no effect on the direction of Arcadia Biosciences i.e., Arcadia Biosciences and IT Tech go up and down completely randomly.

Pair Corralation between Arcadia Biosciences and IT Tech

Given the investment horizon of 90 days Arcadia Biosciences is expected to generate 6.8 times less return on investment than IT Tech. But when comparing it to its historical volatility, Arcadia Biosciences is 1.01 times less risky than IT Tech. It trades about 0.01 of its potential returns per unit of risk. IT Tech Packaging is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  20.00  in IT Tech Packaging on August 4, 2025 and sell it today you would earn a total of  5.00  from holding IT Tech Packaging or generate 25.0% return on investment over 90 days.

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

Arcadia Biosciences  vs.  IT Tech Packaging

Arcadia Biosciences

Risk-Adjusted Performance

Weakest

Over the last 90 days Arcadia Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak fundamental indicators, Arcadia Biosciences may actually be approaching a critical reversion point that can send shares even higher in December 2025.

IT Tech Packaging

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in IT Tech Packaging are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, IT Tech reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Arcadia Biosciences and IT Tech

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

The idea behind Arcadia Biosciences and IT Tech Packaging 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.