Correlation Between LLOYDS and Westrock Coffee
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By analyzing existing cross correlation between LLOYDS BKG GROUP and Westrock Coffee, you can compare the effects of market volatilities on LLOYDS 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 LLOYDS with a short position of Westrock Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of LLOYDS and Westrock Coffee.
Diversification Opportunities for LLOYDS and Westrock Coffee
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LLOYDS and Westrock is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding LLOYDS BKG GROUP and Westrock Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westrock Coffee and LLOYDS 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 LLOYDS BKG GROUP 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 LLOYDS i.e., LLOYDS and Westrock Coffee go up and down completely randomly.
Pair Corralation between LLOYDS and Westrock Coffee
Assuming the 90 days trading horizon LLOYDS BKG GROUP is expected to under-perform the Westrock Coffee. But the bond apears to be less risky and, when comparing its historical volatility, LLOYDS BKG GROUP is 13.76 times less risky than Westrock Coffee. The bond trades about -0.24 of its potential returns per unit of risk. The 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 | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
LLOYDS BKG GROUP vs. Westrock Coffee
Performance |
| Timeline |
| LLOYDS BKG GROUP |
| Westrock Coffee |
LLOYDS and Westrock Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LLOYDS and Westrock Coffee
The main advantage of trading using opposite LLOYDS and Westrock Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LLOYDS 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.The idea behind LLOYDS BKG GROUP and Westrock Coffee pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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