Correlation Between Transport International and COFFEE HOLDING
Can any of the company-specific risk be diversified away by investing in both Transport International 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 Transport International and COFFEE HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transport International Holdings and COFFEE HOLDING, you can compare the effects of market volatilities on Transport International 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 Transport International with a short position of COFFEE HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transport International and COFFEE HOLDING.
Diversification Opportunities for Transport International and COFFEE HOLDING
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Transport and COFFEE is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Transport International Holdin and COFFEE HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFFEE HOLDING and Transport International 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 Transport International Holdings 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 Transport International i.e., Transport International and COFFEE HOLDING go up and down completely randomly.
Pair Corralation between Transport International and COFFEE HOLDING
Assuming the 90 days horizon Transport International Holdings is expected to generate 0.29 times more return on investment than COFFEE HOLDING. However, Transport International Holdings is 3.48 times less risky than COFFEE HOLDING. It trades about 0.1 of its potential returns per unit of risk. COFFEE HOLDING is currently generating about -0.04 per unit of risk. If you would invest 106.00 in Transport International Holdings on September 8, 2025 and sell it today you would earn a total of 7.00 from holding Transport International Holdings or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transport International Holdin vs. COFFEE HOLDING
Performance |
| Timeline |
| Transport International |
| COFFEE HOLDING |
Transport International and COFFEE HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transport International and COFFEE HOLDING
The main advantage of trading using opposite Transport International and COFFEE HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transport International 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.| Transport International vs. Heidelberg Materials AG | Transport International vs. Mitsui Chemicals | Transport International vs. EAGLE MATERIALS | Transport International vs. Zijin Mining Group |
| COFFEE HOLDING vs. Apple Inc | COFFEE HOLDING vs. Apple Inc | COFFEE HOLDING vs. Apple Inc | COFFEE HOLDING vs. Apple 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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