Correlation Between Westrock Coffee and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Westrock Coffee and Apogee Enterprises 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 Westrock Coffee and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westrock Coffee and Apogee Enterprises, you can compare the effects of market volatilities on Westrock Coffee and Apogee Enterprises 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 Westrock Coffee with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westrock Coffee and Apogee Enterprises.
Diversification Opportunities for Westrock Coffee and Apogee Enterprises
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Westrock and Apogee is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Westrock Coffee and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Westrock 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 Westrock Coffee are associated (or correlated) with Apogee Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Enterprises has no effect on the direction of Westrock Coffee i.e., Westrock Coffee and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Westrock Coffee and Apogee Enterprises
Given the investment horizon of 90 days Westrock Coffee is expected to generate 1.79 times more return on investment than Apogee Enterprises. However, Westrock Coffee is 1.79 times more volatile than Apogee Enterprises. It trades about 0.14 of its potential returns per unit of risk. Apogee Enterprises is currently generating about 0.24 per unit of risk. If you would invest 699.00 in Westrock Coffee on August 24, 2024 and sell it today you would earn a total of 68.00 from holding Westrock Coffee or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westrock Coffee vs. Apogee Enterprises
Performance |
| Timeline |
| Westrock Coffee |
| Apogee Enterprises |
Westrock Coffee and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westrock Coffee and Apogee Enterprises
The main advantage of trading using opposite Westrock Coffee and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westrock Coffee position performs unexpectedly, Apogee Enterprises 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 Apogee Enterprises will offset losses from the drop in Apogee Enterprises' long position.| Westrock Coffee vs. Coffee Holding Co | Westrock Coffee vs. Bridgford Foods | Westrock Coffee vs. John B Sanfilippo | Westrock Coffee vs. Treehouse Foods |
| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |