Coffee Commodity Buy Hold or Sell Recommendation
| KCUSX Commodity | 302.90 7.20 2.43% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Coffee is 'Hold'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Coffee given historical horizon and risk tolerance towards Coffee. When Macroaxis issues a 'buy' or 'sell' recommendation for Coffee, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Correlation Analysis 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.
Coffee |
Execute Coffee Buy or Sell Advice
The Coffee recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Coffee. Macroaxis does not own or have any residual interests in Coffee or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Coffee's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Economic Sensitivity | Follows the market closely | Details |
Coffee Returns Distribution Density
The distribution of Coffee's historical returns is an attempt to chart the uncertainty of Coffee's future price movements. The chart of the probability distribution of Coffee daily returns describes the distribution of returns around its average expected value. We use Coffee price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Coffee returns is essential to provide solid investment advice for Coffee.
| Mean Return | 0.28 | Value At Risk | -3.36 | Potential Upside | 3.98 | Standard Deviation | 2.18 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Coffee 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.
Coffee Greeks
Most traded commodities, like Coffee, 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 Coffee 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 Coffee'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 | 0.22 | |
β | Beta against Dow Jones | 0.52 | |
σ | Overall volatility | 2.20 | |
Ir | Information ratio | 0.08 |
Coffee Volatility Alert
Coffee currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.22. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Coffee'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 Coffee'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.Coffee Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Coffee . 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 Coffee 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 Petroleum and Natural Gas Thematic Idea Now
Petroleum and Natural Gas
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas theme has 61 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 Petroleum and Natural Gas Theme or any other thematic opportunities.
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