Correlation Between Graphic Packaging and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Graphic Packaging and Superior Plus 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 Graphic Packaging and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphic Packaging Holding and Superior Plus Corp, you can compare the effects of market volatilities on Graphic Packaging and Superior Plus 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 Graphic Packaging with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphic Packaging and Superior Plus.
Diversification Opportunities for Graphic Packaging and Superior Plus
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graphic and Superior is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Graphic Packaging Holding and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and Graphic Packaging 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 Graphic Packaging Holding are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Graphic Packaging i.e., Graphic Packaging and Superior Plus go up and down completely randomly.
Pair Corralation between Graphic Packaging and Superior Plus
Assuming the 90 days horizon Graphic Packaging is expected to generate 8.03 times less return on investment than Superior Plus. But when comparing it to its historical volatility, Graphic Packaging Holding is 1.79 times less risky than Superior Plus. It trades about 0.05 of its potential returns per unit of risk. Superior Plus Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 416.00 in Superior Plus Corp on September 10, 2024 and sell it today you would earn a total of 38.00 from holding Superior Plus Corp or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphic Packaging Holding vs. Superior Plus Corp
Performance |
| Timeline |
| Graphic Packaging Holding |
| Superior Plus Corp |
Graphic Packaging and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphic Packaging and Superior Plus
The main advantage of trading using opposite Graphic Packaging and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphic Packaging position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Graphic Packaging vs. Superior Plus Corp | Graphic Packaging vs. NMI Holdings | Graphic Packaging vs. Origin Agritech | Graphic Packaging vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. PKSHA TECHNOLOGY INC | Superior Plus vs. Sqs Software Quality | Superior Plus vs. Magic Software Enterprises | Superior Plus vs. Amkor Technology |
Check out your portfolio center.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.
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