Correlation Between Westrock Coffee and Intelligent Protection

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

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

Diversification Opportunities for Westrock Coffee and Intelligent Protection

0.3

Correlation Coefficient

Westrock Coffee  Intelligent Protection

Weak diversification

The 3 months correlation between Westrock and Intelligent is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Westrock Coffee and Intelligent Protection Managem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Protection and Westrock 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 Westrock Coffee are associated (or correlated) with Intelligent Protection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Protection has no effect on the direction of Westrock Coffee i.e., Westrock Coffee and Intelligent Protection go up and down completely randomly.

Pair Corralation between Westrock Coffee and Intelligent Protection

Given the investment horizon of 90 days Westrock Coffee is expected to generate 1.6 times less return on investment than Intelligent Protection. But when comparing it to its historical volatility, Westrock Coffee is 1.21 times less risky than Intelligent Protection. It trades about 0.04 of its potential returns per unit of risk. Intelligent Protection Management is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  186.00  in Intelligent Protection Management on May 5, 2025 and sell it today you would earn a total of  14.00  from holding Intelligent Protection Management or generate 7.53% return on investment over 90 days.

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

Westrock Coffee  vs.  Intelligent Protection Managem

Westrock Coffee

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Westrock Coffee are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Westrock Coffee may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Intelligent Protection

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Protection Management are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Intelligent Protection may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Westrock Coffee and Intelligent Protection

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

The idea behind Westrock Coffee and Intelligent Protection Management 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.