Correlation Between Coffee Holding and Else Nutrition
Can any of the company-specific risk be diversified away by investing in both Coffee Holding and Else Nutrition 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 Coffee Holding and Else Nutrition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coffee Holding Co and Else Nutrition Holdings, you can compare the effects of market volatilities on Coffee Holding and Else Nutrition 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 Coffee Holding with a short position of Else Nutrition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coffee Holding and Else Nutrition.
Diversification Opportunities for Coffee Holding and Else Nutrition
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Coffee and Else is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Coffee Holding Co and Else Nutrition Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Else Nutrition Holdings and Coffee Holding 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 Coffee Holding Co are associated (or correlated) with Else Nutrition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Else Nutrition Holdings has no effect on the direction of Coffee Holding i.e., Coffee Holding and Else Nutrition go up and down completely randomly.
Pair Corralation between Coffee Holding and Else Nutrition
Considering the 90-day investment horizon Coffee Holding is expected to generate 5.85 times less return on investment than Else Nutrition. But when comparing it to its historical volatility, Coffee Holding Co is 3.23 times less risky than Else Nutrition. It trades about 0.12 of its potential returns per unit of risk. Else Nutrition Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.10 in Else Nutrition Holdings on November 3, 2024 and sell it today you would earn a total of 0.63 from holding Else Nutrition Holdings or generate 57.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Coffee Holding Co vs. Else Nutrition Holdings
Performance |
| Timeline |
| Coffee Holding |
| Else Nutrition Holdings |
Coffee Holding and Else Nutrition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coffee Holding and Else Nutrition
The main advantage of trading using opposite Coffee Holding and Else Nutrition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coffee Holding position performs unexpectedly, Else Nutrition 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 Else Nutrition will offset losses from the drop in Else Nutrition's long position.| Coffee Holding vs. Seneca Foods Corp | Coffee Holding vs. J J Snack | Coffee Holding vs. Aryzta AG PK | Coffee Holding vs. Lifeway Foods |
| Else Nutrition vs. Stryve Foods | Else Nutrition vs. Better Choice | Else Nutrition vs. Laird Superfood | Else Nutrition vs. Arcadia Biosciences |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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