Correlation Between Anglo Eastern and Westrock Coffee
Can any of the company-specific risk be diversified away by investing in both Anglo Eastern 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 Anglo Eastern and Westrock Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglo Eastern Plantations PLC and Westrock Coffee, you can compare the effects of market volatilities on Anglo Eastern 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 Anglo Eastern with a short position of Westrock Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo Eastern and Westrock Coffee.
Diversification Opportunities for Anglo Eastern and Westrock Coffee
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Anglo and Westrock is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Anglo Eastern Plantations PLC and Westrock Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westrock Coffee and Anglo Eastern 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 Anglo Eastern Plantations PLC 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 Anglo Eastern i.e., Anglo Eastern and Westrock Coffee go up and down completely randomly.
Pair Corralation between Anglo Eastern and Westrock Coffee
Assuming the 90 days trading horizon Anglo Eastern Plantations PLC is expected to generate 0.71 times more return on investment than Westrock Coffee. However, Anglo Eastern Plantations PLC is 1.42 times less risky than Westrock Coffee. It trades about 0.12 of its potential returns per unit of risk. Westrock Coffee is currently generating about -0.17 per unit of risk. If you would invest 113,611 in Anglo Eastern Plantations PLC on August 13, 2025 and sell it today you would earn a total of 21,889 from holding Anglo Eastern Plantations PLC or generate 19.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglo Eastern Plantations PLC vs. Westrock Coffee
Performance |
| Timeline |
| Anglo Eastern Planta |
| Westrock Coffee |
Anglo Eastern and Westrock Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo Eastern and Westrock Coffee
The main advantage of trading using opposite Anglo Eastern and Westrock Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo Eastern 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.| Anglo Eastern vs. Flow Traders NV | Anglo Eastern vs. Tatton Asset Management | Anglo Eastern vs. Gruppo MutuiOnline SpA | Anglo Eastern vs. Advanced Medical Solutions |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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