Correlation Between Coffee Holding and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Coffee Holding and Bit Origin 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 Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coffee Holding Co and Bit Origin, you can compare the effects of market volatilities on Coffee Holding and Bit Origin 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 Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coffee Holding and Bit Origin.
Diversification Opportunities for Coffee Holding and Bit Origin
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coffee and Bit is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Coffee Holding Co and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin 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 Co are associated (or correlated) with Bit Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Origin has no effect on the direction of Coffee Holding i.e., Coffee Holding and Bit Origin go up and down completely randomly.
Pair Corralation between Coffee Holding and Bit Origin
Considering the 90-day investment horizon Coffee Holding Co is expected to generate 0.29 times more return on investment than Bit Origin. However, Coffee Holding Co is 3.49 times less risky than Bit Origin. It trades about -0.04 of its potential returns per unit of risk. Bit Origin is currently generating about -0.01 per unit of risk. If you would invest 458.00 in Coffee Holding Co on July 25, 2025 and sell it today you would lose (39.00) from holding Coffee Holding Co or give up 8.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coffee Holding Co vs. Bit Origin
Performance |
| Timeline |
| Coffee Holding |
| Bit Origin |
Coffee Holding and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coffee Holding and Bit Origin
The main advantage of trading using opposite Coffee Holding and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coffee Holding position performs unexpectedly, Bit Origin 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 Bit Origin will offset losses from the drop in Bit Origin's long position.| Coffee Holding vs. Bit Origin | Coffee Holding vs. BranchOut Food Common | Coffee Holding vs. Nocera Inc | Coffee Holding vs. Australian Oilseeds Holdings |
| Bit Origin vs. Coffee Holding Co | Bit Origin vs. BranchOut Food Common | Bit Origin vs. Australian Oilseeds Holdings | Bit Origin vs. Nocera Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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