Correlation Between Golden Energy and Coffee Holding
Can any of the company-specific risk be diversified away by investing in both Golden Energy and Coffee Holding 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 Golden Energy and Coffee Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Energy Offshore and Coffee Holding Co, you can compare the effects of market volatilities on Golden Energy and Coffee Holding 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 Golden Energy with a short position of Coffee Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Energy and Coffee Holding.
Diversification Opportunities for Golden Energy and Coffee Holding
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Golden and Coffee is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Golden Energy Offshore and Coffee Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coffee Holding and Golden Energy 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 Golden Energy Offshore are associated (or correlated) with Coffee Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coffee Holding has no effect on the direction of Golden Energy i.e., Golden Energy and Coffee Holding go up and down completely randomly.
Pair Corralation between Golden Energy and Coffee Holding
Assuming the 90 days horizon Golden Energy Offshore is expected to under-perform the Coffee Holding. But the otc stock apears to be less risky and, when comparing its historical volatility, Golden Energy Offshore is 1.12 times less risky than Coffee Holding. The otc stock trades about -0.1 of its potential returns per unit of risk. The Coffee Holding Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 408.00 in Coffee Holding Co on September 9, 2025 and sell it today you would lose (71.00) from holding Coffee Holding Co or give up 17.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
Golden Energy Offshore vs. Coffee Holding Co
Performance |
| Timeline |
| Golden Energy Offshore |
| Coffee Holding |
Golden Energy and Coffee Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Energy and Coffee Holding
The main advantage of trading using opposite Golden Energy and Coffee Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Energy position performs unexpectedly, Coffee Holding 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 Coffee Holding will offset losses from the drop in Coffee Holding's long position.| Golden Energy vs. Toho Titanium Co | Golden Energy vs. Suncorp Technologies Limited | Golden Energy vs. Genoil Inc | Golden Energy vs. Aquarius Engines |
| Coffee Holding vs. Bit Origin | Coffee Holding vs. Eastside Distilling, | Coffee Holding vs. Natural Alternatives International | Coffee Holding vs. Marwynn Holdings, Common |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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