Correlation Between Autogrill SpA and Spot Coffee
Can any of the company-specific risk be diversified away by investing in both Autogrill SpA and Spot Coffee 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 Autogrill SpA and Spot Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autogrill SpA ADR and Spot Coffee, you can compare the effects of market volatilities on Autogrill SpA and Spot Coffee 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 Autogrill SpA with a short position of Spot Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autogrill SpA and Spot Coffee.
Diversification Opportunities for Autogrill SpA and Spot Coffee
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Autogrill and Spot is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Autogrill SpA ADR and Spot Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spot Coffee and Autogrill SpA 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 Autogrill SpA ADR are associated (or correlated) with Spot Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spot Coffee has no effect on the direction of Autogrill SpA i.e., Autogrill SpA and Spot Coffee go up and down completely randomly.
Pair Corralation between Autogrill SpA and Spot Coffee
If you would invest 2.97 in Spot Coffee on August 27, 2024 and sell it today you would lose (2.77) from holding Spot Coffee or give up 93.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Autogrill SpA ADR vs. Spot Coffee
Performance |
| Timeline |
| Autogrill SpA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Spot Coffee |
Autogrill SpA and Spot Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autogrill SpA and Spot Coffee
The main advantage of trading using opposite Autogrill SpA and Spot Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autogrill SpA position performs unexpectedly, Spot Coffee 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 Spot Coffee will offset losses from the drop in Spot Coffee's long position.| Autogrill SpA vs. Marstons PLC | Autogrill SpA vs. Marstons PLC | Autogrill SpA vs. Bagger Daves Burger | Autogrill SpA vs. Alsea SAB de |
| Spot Coffee vs. Alsea SAB de | Spot Coffee vs. Marstons PLC | Spot Coffee vs. Bagger Daves Burger | Spot Coffee vs. Marstons PLC |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |