Correlation Between Coffee Holding and SIMON

Can any of the company-specific risk be diversified away by investing in both Coffee Holding and SIMON 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 SIMON 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 SIMON PPTY GROUP, you can compare the effects of market volatilities on Coffee Holding and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coffee Holding and SIMON.

Diversification Opportunities for Coffee Holding and SIMON

0.58

Correlation Coefficient

Coffee Holding  SIMON

Very weak diversification

The 3 months correlation between Coffee and SIMON is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Coffee Holding Co and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Coffee Holding i.e., Coffee Holding and SIMON go up and down completely randomly.

Pair Corralation between Coffee Holding and SIMON

Considering the 90-day investment horizon Coffee Holding Co is expected to generate 9.63 times more return on investment than SIMON. However, Coffee Holding is 9.63 times more volatile than SIMON PPTY GROUP. It trades about 0.01 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.02 per unit of risk. If you would invest  429.00  in Coffee Holding Co on September 9, 2025 and sell it today you would lose (86.00) from holding Coffee Holding Co or give up 20.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.6%
Values	Daily Returns

Coffee Holding Co  vs.  SIMON PPTY GROUP

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 fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

SIMON PPTY GROUP

Risk-Adjusted Performance

Weakest

Over the last 90 days SIMON PPTY GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SIMON is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Coffee Holding and SIMON

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

The idea behind Coffee Holding Co and SIMON PPTY GROUP 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.