Correlation Between Coffee Holding and 00108WAF7
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By analyzing existing cross correlation between Coffee Holding Co and AEP TEX INC, you can compare the effects of market volatilities on Coffee Holding and 00108WAF7 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 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coffee Holding and 00108WAF7.
Diversification Opportunities for Coffee Holding and 00108WAF7
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Coffee and 00108WAF7 is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Coffee Holding Co and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC 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 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of Coffee Holding i.e., Coffee Holding and 00108WAF7 go up and down completely randomly.
Pair Corralation between Coffee Holding and 00108WAF7
Considering the 90-day investment horizon Coffee Holding Co is expected to under-perform the 00108WAF7. In addition to that, Coffee Holding is 2.03 times more volatile than AEP TEX INC. It trades about -0.04 of its total potential returns per unit of risk. AEP TEX INC is currently generating about 0.05 per unit of volatility. If you would invest 7,437 in AEP TEX INC on September 4, 2025 and sell it today you would earn a total of 161.00 from holding AEP TEX INC or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 50.79% |
| Values | Daily Returns |
Coffee Holding Co vs. AEP TEX INC
Performance |
| Timeline |
| Coffee Holding |
| AEP TEX INC |
Coffee Holding and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coffee Holding and 00108WAF7
The main advantage of trading using opposite Coffee Holding and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coffee Holding position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| Coffee Holding vs. BG Foods | Coffee Holding vs. Guangdong Investment Limited | Coffee Holding vs. First Foods Group | Coffee Holding vs. Organic Garage |
| 00108WAF7 vs. UCB SA | 00108WAF7 vs. Il2m International Corp | 00108WAF7 vs. Fox Wizel | 00108WAF7 vs. CBLT 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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