Correlation Between DIRTT Environmental and Plantify Foods

Can any of the company-specific risk be diversified away by investing in both DIRTT Environmental and Plantify Foods 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 DIRTT Environmental and Plantify Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DIRTT Environmental Solutions and Plantify Foods, you can compare the effects of market volatilities on DIRTT Environmental and Plantify Foods 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 DIRTT Environmental with a short position of Plantify Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIRTT Environmental and Plantify Foods.

Diversification Opportunities for DIRTT Environmental and Plantify Foods

0.0

Correlation Coefficient

DIRTT Environmental  Plantify Foods

Pay attention - limited upside

The 3 months correlation between DIRTT and Plantify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DIRTT Environmental Solutions and Plantify Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plantify Foods and DIRTT Environmental 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 DIRTT Environmental Solutions are associated (or correlated) with Plantify Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plantify Foods has no effect on the direction of DIRTT Environmental i.e., DIRTT Environmental and Plantify Foods go up and down completely randomly.

Pair Corralation between DIRTT Environmental and Plantify Foods

If you would invest  98.00  in DIRTT Environmental Solutions on April 24, 2025 and sell it today you would lose (5.00) from holding DIRTT Environmental Solutions or give up 5.1% of portfolio value over 90 days.

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

DIRTT Environmental Solutions  vs.  Plantify Foods

DIRTT Environmental

Risk-Adjusted Performance

Very Weak

Over the last 90 days DIRTT Environmental Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, DIRTT Environmental is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Plantify Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days Plantify Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Plantify Foods is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with DIRTT Environmental and Plantify Foods

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

The idea behind DIRTT Environmental Solutions and Plantify Foods 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.