Correlation Between JLF INVESTMENT and Coffee Holding
Can any of the company-specific risk be diversified away by investing in both JLF INVESTMENT 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 JLF INVESTMENT and Coffee Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLF INVESTMENT and Coffee Holding Co, you can compare the effects of market volatilities on JLF INVESTMENT 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 JLF INVESTMENT with a short position of Coffee Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLF INVESTMENT and Coffee Holding.
Diversification Opportunities for JLF INVESTMENT and Coffee Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JLF and Coffee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JLF INVESTMENT and Coffee Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coffee Holding and JLF INVESTMENT 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 JLF INVESTMENT 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 JLF INVESTMENT i.e., JLF INVESTMENT and Coffee Holding go up and down completely randomly.
Pair Corralation between JLF INVESTMENT and Coffee Holding
If you would invest 101.00 in Coffee Holding Co on November 7, 2024 and sell it today you would earn a total of 277.00 from holding Coffee Holding Co or generate 274.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLF INVESTMENT vs. Coffee Holding Co
Performance |
| Timeline |
| JLF INVESTMENT |
| Coffee Holding |
JLF INVESTMENT and Coffee Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLF INVESTMENT and Coffee Holding
The main advantage of trading using opposite JLF INVESTMENT and Coffee Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLF INVESTMENT 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.| JLF INVESTMENT vs. Cal Maine Foods | JLF INVESTMENT vs. CHRYSALIS INVESTMENTS LTD | JLF INVESTMENT vs. Scottish Mortgage Investment | JLF INVESTMENT vs. US FOODS HOLDING |
| Coffee Holding vs. Beta Systems Software | Coffee Holding vs. Cal Maine Foods | Coffee Holding vs. Alfa Financial Software | Coffee Holding vs. United Natural Foods |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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