Correlation Between COFFEE HOLDING and Stag Industrial
Can any of the company-specific risk be diversified away by investing in both COFFEE HOLDING and Stag Industrial 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 Stag Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFFEE HOLDING and Stag Industrial, you can compare the effects of market volatilities on COFFEE HOLDING and Stag Industrial 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 Stag Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFFEE HOLDING and Stag Industrial.
Diversification Opportunities for COFFEE HOLDING and Stag Industrial
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COFFEE and Stag is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding COFFEE HOLDING and Stag Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stag Industrial 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 are associated (or correlated) with Stag Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stag Industrial has no effect on the direction of COFFEE HOLDING i.e., COFFEE HOLDING and Stag Industrial go up and down completely randomly.
Pair Corralation between COFFEE HOLDING and Stag Industrial
Assuming the 90 days trading horizon COFFEE HOLDING is expected to under-perform the Stag Industrial. In addition to that, COFFEE HOLDING is 3.01 times more volatile than Stag Industrial. It trades about -0.03 of its total potential returns per unit of risk. Stag Industrial is currently generating about 0.13 per unit of volatility. If you would invest 3,070 in Stag Industrial on September 2, 2025 and sell it today you would earn a total of 303.00 from holding Stag Industrial or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
COFFEE HOLDING vs. Stag Industrial
Performance |
| Timeline |
| COFFEE HOLDING |
| Stag Industrial |
COFFEE HOLDING and Stag Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFFEE HOLDING and Stag Industrial
The main advantage of trading using opposite COFFEE HOLDING and Stag Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFFEE HOLDING position performs unexpectedly, Stag Industrial 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 Stag Industrial will offset losses from the drop in Stag Industrial's long position.| COFFEE HOLDING vs. TRADEGATE | COFFEE HOLDING vs. Silicon Motion Technology | COFFEE HOLDING vs. SEKISUI CHEMICAL | COFFEE HOLDING vs. Retail Estates NV |
| Stag Industrial vs. Diversified Healthcare Trust | Stag Industrial vs. RETAIL FOOD GROUP | Stag Industrial vs. AEON STORES | Stag Industrial vs. COSTCO WHOLESALE CDR |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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