Correlation Between Figaro Coffee and Golden Haven
Can any of the company-specific risk be diversified away by investing in both Figaro Coffee and Golden Haven 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 Figaro Coffee and Golden Haven into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figaro Coffee Group and Golden Haven Memorial, you can compare the effects of market volatilities on Figaro Coffee and Golden Haven 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 Figaro Coffee with a short position of Golden Haven. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figaro Coffee and Golden Haven.
Diversification Opportunities for Figaro Coffee and Golden Haven
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Figaro and Golden is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Figaro Coffee Group and Golden Haven Memorial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Haven Memorial and Figaro Coffee 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 Figaro Coffee Group are associated (or correlated) with Golden Haven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Haven Memorial has no effect on the direction of Figaro Coffee i.e., Figaro Coffee and Golden Haven go up and down completely randomly.
Pair Corralation between Figaro Coffee and Golden Haven
Assuming the 90 days trading horizon Figaro Coffee Group is expected to under-perform the Golden Haven. But the stock apears to be less risky and, when comparing its historical volatility, Figaro Coffee Group is 1.5 times less risky than Golden Haven. The stock trades about -0.03 of its potential returns per unit of risk. The Golden Haven Memorial is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 220,000 in Golden Haven Memorial on August 31, 2024 and sell it today you would lose (5,000) from holding Golden Haven Memorial or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Figaro Coffee Group vs. Golden Haven Memorial
Performance |
| Timeline |
| Figaro Coffee Group |
| Golden Haven Memorial |
Figaro Coffee and Golden Haven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figaro Coffee and Golden Haven
The main advantage of trading using opposite Figaro Coffee and Golden Haven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figaro Coffee position performs unexpectedly, Golden Haven 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 Golden Haven will offset losses from the drop in Golden Haven's long position.| Figaro Coffee vs. Jollibee Foods Corp | Figaro Coffee vs. Bloomberry Resorts Corp | Figaro Coffee vs. Berjaya Philippines | Figaro Coffee vs. Pacificonline Systems |
| Golden Haven vs. Alliance Select Foods | Golden Haven vs. Century Pacific Food | Golden Haven vs. Robinsons Retail Holdings | Golden Haven vs. Suntrust Home Developers |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |