Cocoa Commodity Performance
| CCUSD Commodity | 9,392 548.00 6.20% |
The commodity shows a Beta (market volatility) of 0.54, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Cocoa's returns are expected to increase less than the market. However, during the bear market, the loss of holding Cocoa is expected to be smaller as well.
Risk-Adjusted Performance
10 of 100
Weak | Strong |
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Cocoa are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Cocoa exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more
Cocoa |
Cocoa Relative Risk vs. Return Landscape
If you would invest 727,000 in Cocoa on September 1, 2024 and sell it today you would earn a total of 212,200 from holding Cocoa or generate 29.19% return on investment over 90 days. Cocoa is currently producing 0.4534% returns and takes up 3.2639% volatility of returns over 90 trading days. Put another way, 29% of traded commoditys are less volatile than Cocoa, and 91% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
| Risk |
Cocoa Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cocoa's investment risk. Standard deviation is the most common way to measure market volatility of commoditys, such as Cocoa, and traders can use it to determine the average amount a Cocoa's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = 0.1389
| Best Portfolio | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | CCUSD | |||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns |
Estimated Market Risk
| 3.26 actual daily | 29 71% of assets are more volatile |
Expected Return
| 0.45 actual daily | 8 92% of assets have higher returns |
Risk-Adjusted Return
| 0.14 actual daily | 10 90% of assets perform better |
Based on monthly moving average Cocoa is performing at about 10% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Cocoa by adding it to a well-diversified portfolio.
| Cocoa had very high historical volatility over the last 90 days |