Correlation Between NASDAQ TEST and Forafric Global

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

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

Diversification Opportunities for NASDAQ TEST and Forafric Global

-0.06

Correlation Coefficient

NASDAQ TEST  Forafric Global

Good diversification

The 3 months correlation between NASDAQ and Forafric is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ TEST STOCK 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 NASDAQ TEST 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 NASDAQ TEST STOCK 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 NASDAQ TEST i.e., NASDAQ TEST and Forafric Global go up and down completely randomly.

Pair Corralation between NASDAQ TEST and Forafric Global

Assuming the 90 days horizon NASDAQ TEST STOCK is expected to generate 17.49 times more return on investment than Forafric Global. However, NASDAQ TEST is 17.49 times more volatile than Forafric Global PLC. It trades about 0.01 of its potential returns per unit of risk. Forafric Global PLC is currently generating about -0.02 per unit of risk. If you would invest  2,483  in NASDAQ TEST STOCK on May 6, 2025 and sell it today you would lose (620.00) from holding NASDAQ TEST STOCK or give up 24.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.48%
Values	Daily Returns

NASDAQ TEST STOCK  vs.  Forafric Global PLC

NASDAQ TEST STOCK

Risk-Adjusted Performance

Very Weak

Over the last 90 days NASDAQ TEST STOCK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, NASDAQ TEST is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Forafric Global PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Forafric Global PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Forafric Global is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with NASDAQ TEST and Forafric Global

The main advantage of trading using opposite NASDAQ TEST and Forafric Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NASDAQ TEST 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 NASDAQ TEST STOCK 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.