Correlation Between Coffee Holding and EverCommerce

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

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

Diversification Opportunities for Coffee Holding and EverCommerce

0.75

Correlation Coefficient

Coffee Holding  EverCommerce

Poor diversification

The 3 months correlation between Coffee and EverCommerce is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Coffee Holding Co and EverCommerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EverCommerce and Coffee Holding 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 Coffee Holding Co are associated (or correlated) with EverCommerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EverCommerce has no effect on the direction of Coffee Holding i.e., Coffee Holding and EverCommerce go up and down completely randomly.

Pair Corralation between Coffee Holding and EverCommerce

Considering the 90-day investment horizon Coffee Holding Co is expected to generate 0.97 times more return on investment than EverCommerce. However, Coffee Holding Co is 1.03 times less risky than EverCommerce. It trades about -0.05 of its potential returns per unit of risk. EverCommerce is currently generating about -0.06 per unit of risk. If you would invest  409.00  in Coffee Holding Co on September 7, 2025 and sell it today you would lose (52.00) from holding Coffee Holding Co or give up 12.71% of portfolio value over 90 days.

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

Coffee Holding Co  vs.  EverCommerce

Coffee Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Coffee Holding Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

EverCommerce

Risk-Adjusted Performance

Weakest

Over the last 90 days EverCommerce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Coffee Holding and EverCommerce

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

The idea behind Coffee Holding Co and EverCommerce 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.