Correlation Between Westrock Coffee and American National

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

By analyzing existing cross correlation between Westrock Coffee and American National Insurance, you can compare the effects of market volatilities on Westrock Coffee and American National 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 American National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westrock Coffee and American National.

Diversification Opportunities for Westrock Coffee and American National

0.0

Correlation Coefficient

Westrock Coffee  American National

Pay attention - limited upside

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

Pair Corralation between Westrock Coffee and American National

If you would invest (100.00) in American National Insurance on March 12, 2024 and sell it today you would earn a total of  100.00  from holding American National Insurance or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Westrock Coffee  vs.  American National Insurance

Westrock Coffee

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Westrock Coffee are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Westrock Coffee unveiled solid returns over the last few months and may actually be approaching a breakup point.

American National

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days American National Insurance has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, American National is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Westrock Coffee and American National

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

The idea behind Westrock Coffee and American National Insurance 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.