Correlation Between Coffee Holding and Willscot Mobile
Can any of the company-specific risk be diversified away by investing in both Coffee Holding and Willscot Mobile 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 Willscot Mobile 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 Willscot Mobile Mini, you can compare the effects of market volatilities on Coffee Holding and Willscot Mobile 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 Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coffee Holding and Willscot Mobile.
Diversification Opportunities for Coffee Holding and Willscot Mobile
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coffee and Willscot is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Coffee Holding Co and Willscot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willscot Mobile Mini 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 Willscot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willscot Mobile Mini has no effect on the direction of Coffee Holding i.e., Coffee Holding and Willscot Mobile go up and down completely randomly.
Pair Corralation between Coffee Holding and Willscot Mobile
Considering the 90-day investment horizon Coffee Holding Co is expected to under-perform the Willscot Mobile. In addition to that, Coffee Holding is 1.03 times more volatile than Willscot Mobile Mini. It trades about -0.08 of its total potential returns per unit of risk. Willscot Mobile Mini is currently generating about -0.03 per unit of volatility. If you would invest 2,281 in Willscot Mobile Mini on September 10, 2025 and sell it today you would lose (215.00) from holding Willscot Mobile Mini or give up 9.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coffee Holding Co vs. Willscot Mobile Mini
Performance |
| Timeline |
| Coffee Holding |
| Willscot Mobile Mini |
Coffee Holding and Willscot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coffee Holding and Willscot Mobile
The main advantage of trading using opposite Coffee Holding and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coffee Holding position performs unexpectedly, Willscot Mobile 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 Willscot Mobile will offset losses from the drop in Willscot Mobile's long position.| Coffee Holding vs. Bit Origin | Coffee Holding vs. Eastside Distilling, | Coffee Holding vs. Natural Alternatives International | Coffee Holding vs. Marwynn Holdings, Common |
| Willscot Mobile vs. Exponent | Willscot Mobile vs. Argan Inc | Willscot Mobile vs. MDU Resources Group | Willscot Mobile vs. SkyWest |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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