Correlation Between Westrock Coffee and Power Integrations
Can any of the company-specific risk be diversified away by investing in both Westrock Coffee and Power Integrations 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 Westrock Coffee and Power Integrations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westrock Coffee and Power Integrations, you can compare the effects of market volatilities on Westrock Coffee and Power Integrations 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 Westrock Coffee with a short position of Power Integrations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westrock Coffee and Power Integrations.
Diversification Opportunities for Westrock Coffee and Power Integrations
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Westrock and Power is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Westrock Coffee and Power Integrations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Integrations and Westrock Coffee 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 Westrock Coffee are associated (or correlated) with Power Integrations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Integrations has no effect on the direction of Westrock Coffee i.e., Westrock Coffee and Power Integrations go up and down completely randomly.
Pair Corralation between Westrock Coffee and Power Integrations
Given the investment horizon of 90 days Westrock Coffee is expected to generate 1.11 times more return on investment than Power Integrations. However, Westrock Coffee is 1.11 times more volatile than Power Integrations. It trades about -0.13 of its potential returns per unit of risk. Power Integrations is currently generating about -0.15 per unit of risk. If you would invest 688.00 in Westrock Coffee on June 11, 2025 and sell it today you would lose (150.00) from holding Westrock Coffee or give up 21.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westrock Coffee vs. Power Integrations
Performance |
| Timeline |
| Westrock Coffee |
| Power Integrations |
Westrock Coffee and Power Integrations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westrock Coffee and Power Integrations
The main advantage of trading using opposite Westrock Coffee and Power Integrations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westrock Coffee position performs unexpectedly, Power Integrations 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 Power Integrations will offset losses from the drop in Power Integrations' long position.| Westrock Coffee vs. Farmer Bros Co | Westrock Coffee vs. Seneca Foods Corp | Westrock Coffee vs. Bridgford Foods | Westrock Coffee vs. Ascent Solar Technologies, |
| Power Integrations vs. Diodes Incorporated | Power Integrations vs. MACOM Technology Solutions | Power Integrations vs. Cirrus Logic | Power Integrations vs. Amkor Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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