Correlation Between Affinity Beverage and Woodbrook Group

Can any of the company-specific risk be diversified away by investing in both Affinity Beverage and Woodbrook Group 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 Affinity Beverage and Woodbrook Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Affinity Beverage Group and Woodbrook Group Holdings, you can compare the effects of market volatilities on Affinity Beverage and Woodbrook Group 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 Affinity Beverage with a short position of Woodbrook Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affinity Beverage and Woodbrook Group.

Diversification Opportunities for Affinity Beverage and Woodbrook Group

0.0

Correlation Coefficient

Affinity Beverage  Woodbrook Group

Pay attention - limited upside

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

Pair Corralation between Affinity Beverage and Woodbrook Group

If you would invest  0.00  in Affinity Beverage Group on May 5, 2025 and sell it today you would earn a total of  0.00  from holding Affinity Beverage Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	81.25%
Values	Daily Returns

Affinity Beverage Group  vs.  Woodbrook Group Holdings

Affinity Beverage

Risk-Adjusted Performance

Very Weak

Over the last 90 days Affinity Beverage Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Affinity Beverage is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Woodbrook Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Woodbrook Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental drivers remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Affinity Beverage and Woodbrook Group

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

The idea behind Affinity Beverage Group and Woodbrook Group Holdings 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.