Cocoa Commodity Buy Hold or Sell Recommendation
| CCUSD Commodity | 8,963 328.00 3.80% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Cocoa is 'Strong Sell'. Macroaxis provides Cocoa buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Cocoa positions.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any commodity could be closely tied with the direction of predictive economic indicators such as signals in state. Also, note that the market value of any commodity could be closely tied with the direction of predictive economic indicators such as signals in state.
Cocoa |
Execute Cocoa Buy or Sell Advice
The Cocoa recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Cocoa. Macroaxis does not own or have any residual interests in Cocoa or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Cocoa's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Economic Sensitivity | Barely shadows the market | Details |
Cocoa Trading Alerts and Improvement Suggestions
| Cocoa had very high historical volatility over the last 90 days |
Cocoa Returns Distribution Density
The distribution of Cocoa's historical returns is an attempt to chart the uncertainty of Cocoa's future price movements. The chart of the probability distribution of Cocoa daily returns describes the distribution of returns around its average expected value. We use Cocoa price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Cocoa returns is essential to provide solid investment advice for Cocoa.
| Mean Return | 0.27 | Value At Risk | -5.23 | Potential Upside | 5.56 | Standard Deviation | 3.17 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Cocoa historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Cocoa Greeks
Most traded commodities, like Cocoa, are exposed to two types of risk: systematic (i.e., market-wide) and unsystematic (i.e., specific to the commodities market). Unsystematic risk pertains to events directly impacting Cocoa prices. This risk can be mitigated by diversifying investments across various commodities from different sectors that have low correlation with each other. Conversely, systematic risk involves price fluctuations due to broader commodity market trends and cannot be eliminated through diversification. Regardless of the number of commodities in your portfolio, market-wide risks persist. However, you can assess Cocoa's historical responsiveness to market shifts to gauge your comfort with its price volatility. Beta and standard deviation are key metrics to guide this analysis.
α | Alpha over Dow Jones | 0.24 | |
β | Beta against Dow Jones | 0.14 | |
σ | Overall volatility | 3.18 | |
Ir | Information ratio | 0.04 |
Cocoa Volatility Alert
Cocoa shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cocoa's commodity risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cocoa's commodity price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Cocoa Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Cocoa . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Use Investing Ideas to Build Portfolios
In addition to having Cocoa in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Long/short ETFs Thematic Idea Now
Long/short ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Long/short ETFs theme has 24 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Long/short ETFs Theme or any other thematic opportunities.
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