Cocoa Commodity Chance of Future Commodity Price Finishing Under 7475.0
| CCUSD Commodity | 8,963 328.00 3.80% |
Cocoa |
Cocoa Target Price Odds to finish below 7475.0
The tendency of Cocoa Commodity price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to drop to 7,475 or more in 90 days |
| 8,963 | 90 days | 7,475 | about 41.78 |
Based on a normal probability distribution, the odds of Cocoa to drop to 7,475 or more in 90 days from now is about 41.78 (This Cocoa probability density function shows the probability of Cocoa Commodity to fall within a particular range of prices over 90 days) . Probability of Cocoa price to stay between 7,475 and its current price of 8963.0 at the end of the 90-day period is about 57.77 .
Assuming the 90 days horizon Cocoa has a beta of 0.14 suggesting as returns on the market go up, Cocoa average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Cocoa will be expected to be much smaller as well. Additionally Cocoa has an alpha of 0.2436, implying that it can generate a 0.24 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Cocoa Price Density |
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Predictive Modules for Cocoa
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Cocoa. Regardless of method or technology, however, to accurately forecast the commodity market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the commodity market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cocoa's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Cocoa Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Cocoa is not an exception. The market had few large corrections towards the Cocoa's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Cocoa, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Cocoa within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | 0.24 | |
β | Beta against Dow Jones | 0.14 | |
σ | Overall volatility | 495.61 | |
Ir | Information ratio | 0.04 |
Cocoa Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Cocoa for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Cocoa can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Cocoa had very high historical volatility over the last 90 days |
Cocoa Technical Analysis
Cocoa's future price can be derived by breaking down and analyzing its technical indicators over time. Cocoa Commodity technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Cocoa. In general, you should focus on analyzing Cocoa Commodity price patterns and their correlations with different microeconomic environments and drivers.
Cocoa Predictive Forecast Models
Cocoa's time-series forecasting models is one of many Cocoa's commodity analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Cocoa's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the commodity market movement and maximize returns from investment trading.
Things to note about Cocoa
Checking the ongoing alerts about Cocoa for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Cocoa help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Cocoa had very high historical volatility over the last 90 days |