Correlation Between Vintage Coffee and Automotive Stampings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Vintage Coffee and Automotive Stampings 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 Vintage Coffee and Automotive Stampings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vintage Coffee and and Automotive Stampings and, you can compare the effects of market volatilities on Vintage Coffee and Automotive Stampings 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 Vintage Coffee with a short position of Automotive Stampings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vintage Coffee and Automotive Stampings.

Diversification Opportunities for Vintage Coffee and Automotive Stampings

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Vintage and Automotive is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Vintage Coffee and and Automotive Stampings and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automotive Stampings and and Vintage 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 Vintage Coffee and are associated (or correlated) with Automotive Stampings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automotive Stampings and has no effect on the direction of Vintage Coffee i.e., Vintage Coffee and Automotive Stampings go up and down completely randomly.

Pair Corralation between Vintage Coffee and Automotive Stampings

Assuming the 90 days trading horizon Vintage Coffee and is expected to generate 1.0 times more return on investment than Automotive Stampings. However, Vintage Coffee and is 1.0 times less risky than Automotive Stampings. It trades about 0.25 of its potential returns per unit of risk. Automotive Stampings and is currently generating about 0.08 per unit of risk. If you would invest  9,938  in Vintage Coffee and on April 25, 2025 and sell it today you would earn a total of  5,159  from holding Vintage Coffee and or generate 51.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Vintage Coffee and  vs.  Automotive Stampings and

 Performance 
       Timeline  
Vintage Coffee 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Vintage Coffee and are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Vintage Coffee exhibited solid returns over the last few months and may actually be approaching a breakup point.
Automotive Stampings and 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Automotive Stampings and are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Automotive Stampings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Vintage Coffee and Automotive Stampings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vintage Coffee and Automotive Stampings

The main advantage of trading using opposite Vintage Coffee and Automotive Stampings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vintage Coffee position performs unexpectedly, Automotive Stampings 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 Automotive Stampings will offset losses from the drop in Automotive Stampings' long position.
The idea behind Vintage Coffee and and Automotive Stampings and 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.
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Transaction History
View history of all your transactions and understand their impact on performance
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Technical Analysis
Check basic technical indicators and analysis based on most latest market data