Correlation Between Amdocs and COFFEE HOLDING

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

By analyzing existing cross correlation between Amdocs Limited and COFFEE HOLDING, you can compare the effects of market volatilities on Amdocs 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 Amdocs with a short position of COFFEE HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amdocs and COFFEE HOLDING.

Diversification Opportunities for Amdocs and COFFEE HOLDING

-0.3

Correlation Coefficient

Amdocs  COFFEE HOLDING

Very good diversification

The 3 months correlation between Amdocs and COFFEE is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amdocs Limited and COFFEE HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFFEE HOLDING and Amdocs 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 Amdocs Limited 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 Amdocs i.e., Amdocs and COFFEE HOLDING go up and down completely randomly.

Pair Corralation between Amdocs and COFFEE HOLDING

Assuming the 90 days horizon Amdocs Limited is expected to under-perform the COFFEE HOLDING. But the stock apears to be less risky and, when comparing its historical volatility, Amdocs Limited is 2.45 times less risky than COFFEE HOLDING. The stock trades about -0.09 of its potential returns per unit of risk. The COFFEE HOLDING is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  370.00  in COFFEE HOLDING on July 17, 2025 and sell it today you would earn a total of  0.00  from holding COFFEE HOLDING or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Amdocs Limited  vs.  COFFEE HOLDING

Amdocs Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Amdocs Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

COFFEE HOLDING

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in COFFEE HOLDING are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, COFFEE HOLDING is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Amdocs and COFFEE HOLDING

The main advantage of trading using opposite Amdocs and COFFEE HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amdocs 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.

The idea behind Amdocs Limited and COFFEE HOLDING 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.