Correlation Between Figaro Coffee and Atok Big

Can any of the company-specific risk be diversified away by investing in both Figaro Coffee and Atok Big 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 Figaro Coffee and Atok Big into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Figaro Coffee Group and Atok Big Wedge, you can compare the effects of market volatilities on Figaro Coffee and Atok Big 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 Figaro Coffee with a short position of Atok Big. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figaro Coffee and Atok Big.

Diversification Opportunities for Figaro Coffee and Atok Big

0.0

Correlation Coefficient

Figaro Coffee  Atok Big

Pay attention - limited upside

The 3 months correlation between Figaro and Atok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Figaro Coffee Group and Atok Big Wedge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atok Big Wedge and Figaro 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 Figaro Coffee Group are associated (or correlated) with Atok Big. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atok Big Wedge has no effect on the direction of Figaro Coffee i.e., Figaro Coffee and Atok Big go up and down completely randomly.

Pair Corralation between Figaro Coffee and Atok Big

If you would invest  66.00  in Figaro Coffee Group on April 10, 2025 and sell it today you would earn a total of  4.00  from holding Figaro Coffee Group or generate 6.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Figaro Coffee Group  vs.  Atok Big Wedge

Figaro Coffee Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Figaro Coffee Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Figaro Coffee may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Atok Big Wedge

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atok Big Wedge has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Atok Big is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Figaro Coffee and Atok Big

The main advantage of trading using opposite Figaro Coffee and Atok Big positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figaro Coffee position performs unexpectedly, Atok Big 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 Atok Big will offset losses from the drop in Atok Big's long position.

The idea behind Figaro Coffee Group and Atok Big Wedge pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.