Cocoa Commodity Performance
| CCUSD Commodity | 7,872 5.00 0.06% |
The commodity shows a Beta (market volatility) of 0.38, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Cocoa's returns are expected to increase less than the market. However, during the bear market, the loss of holding Cocoa is expected to be smaller as well.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Cocoa has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Commodity's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Cocoa shareholders. ...more
Cocoa |
Cocoa Relative Risk vs. Return Landscape
If you would invest 1,176,500 in Cocoa on December 17, 2024 and sell it today you would lose (389,300) from holding Cocoa or give up 33.09% of portfolio value over 90 days. Cocoa is currently producing negative expected returns and takes up 4.0483% volatility of returns over 90 trading days. Put another way, 36% of traded commoditys are less volatile than Cocoa, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
| Risk |
Cocoa Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cocoa's investment risk. Standard deviation is the most common way to measure market volatility of commoditys, such as Cocoa, and traders can use it to determine the average amount a Cocoa's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.1371
| Best Portfolio | Best Equity | |||
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | CCUSD |
Estimated Market Risk
| 4.05 actual daily | 36 64% of assets are more volatile |
Expected Return
| -0.55 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.14 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Cocoa is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Cocoa by adding Cocoa to a well-diversified portfolio.
| Cocoa generated a negative expected return over the last 90 days | |
| Cocoa has high historical volatility and very poor performance |