Correlation Between TINC Comm and Coffee Holding
Can any of the company-specific risk be diversified away by investing in both TINC Comm and Coffee Holding 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 TINC Comm and Coffee Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TINC Comm VA and Coffee Holding Co, you can compare the effects of market volatilities on TINC Comm and Coffee Holding 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 TINC Comm with a short position of Coffee Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of TINC Comm and Coffee Holding.
Diversification Opportunities for TINC Comm and Coffee Holding
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TINC and Coffee is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding TINC Comm VA and Coffee Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coffee Holding and TINC Comm 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 TINC Comm VA are associated (or correlated) with Coffee Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coffee Holding has no effect on the direction of TINC Comm i.e., TINC Comm and Coffee Holding go up and down completely randomly.
Pair Corralation between TINC Comm and Coffee Holding
Assuming the 90 days horizon TINC Comm VA is expected to under-perform the Coffee Holding. But the stock apears to be less risky and, when comparing its historical volatility, TINC Comm VA is 7.73 times less risky than Coffee Holding. The stock trades about -0.01 of its potential returns per unit of risk. The Coffee Holding Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 151.00 in Coffee Holding Co on October 14, 2024 and sell it today you would earn a total of 201.00 from holding Coffee Holding Co or generate 133.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TINC Comm VA vs. Coffee Holding Co
Performance |
| Timeline |
| TINC Comm VA |
| Coffee Holding |
TINC Comm and Coffee Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TINC Comm and Coffee Holding
The main advantage of trading using opposite TINC Comm and Coffee Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TINC Comm position performs unexpectedly, Coffee Holding 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 Coffee Holding will offset losses from the drop in Coffee Holding's long position.| TINC Comm vs. Ares Management Corp | TINC Comm vs. Superior Plus Corp | TINC Comm vs. NMI Holdings | TINC Comm vs. SIVERS SEMICONDUCTORS AB |
| Coffee Holding vs. Gaztransport Technigaz SA | Coffee Holding vs. Iridium Communications | Coffee Holding vs. MOBILE FACTORY INC | Coffee Holding vs. Zoom Video Communications |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |