Correlation Between Global Ship and Westrock Coffee
Can any of the company-specific risk be diversified away by investing in both Global Ship and Westrock 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 Global Ship and Westrock Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and Westrock Coffee, you can compare the effects of market volatilities on Global Ship and Westrock 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 Global Ship with a short position of Westrock Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Westrock Coffee.
Diversification Opportunities for Global Ship and Westrock Coffee
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Westrock is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Westrock Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westrock Coffee and Global Ship 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 Global Ship Lease are associated (or correlated) with Westrock Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westrock Coffee has no effect on the direction of Global Ship i.e., Global Ship and Westrock Coffee go up and down completely randomly.
Pair Corralation between Global Ship and Westrock Coffee
Assuming the 90 days trading horizon Global Ship is expected to generate 164.31 times less return on investment than Westrock Coffee. But when comparing it to its historical volatility, Global Ship Lease is 5.2 times less risky than Westrock Coffee. It trades about 0.01 of its potential returns per unit of risk. Westrock Coffee is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 664.00 in Westrock Coffee on September 1, 2024 and sell it today you would earn a total of 139.00 from holding Westrock Coffee or generate 20.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. Westrock Coffee
Performance |
| Timeline |
| Global Ship Lease |
| Westrock Coffee |
Global Ship and Westrock Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Westrock Coffee
The main advantage of trading using opposite Global Ship and Westrock Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, Westrock 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 Westrock Coffee will offset losses from the drop in Westrock Coffee's long position.| Global Ship vs. Safe Bulkers | Global Ship vs. Diana Shipping | Global Ship vs. Costamare | Global Ship vs. Safe Bulkers |
| Westrock Coffee vs. Campbell Soup | Westrock Coffee vs. ConAgra Foods | Westrock Coffee vs. Hormel Foods | Westrock Coffee vs. Kellanova |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |