Correlation Between Amcor PLC and Nampak
Can any of the company-specific risk be diversified away by investing in both Amcor PLC and Nampak 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 Amcor PLC and Nampak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amcor PLC and Nampak, you can compare the effects of market volatilities on Amcor PLC and Nampak 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 Amcor PLC with a short position of Nampak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amcor PLC and Nampak.
Diversification Opportunities for Amcor PLC and Nampak
Excellent diversification
The 3 months correlation between Amcor and Nampak is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Amcor PLC and Nampak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nampak and Amcor PLC 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 Amcor PLC are associated (or correlated) with Nampak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nampak has no effect on the direction of Amcor PLC i.e., Amcor PLC and Nampak go up and down completely randomly.
Pair Corralation between Amcor PLC and Nampak
If you would invest 1,250 in Nampak on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Nampak or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Amcor PLC vs. Nampak
Performance |
| Timeline |
| Amcor PLC |
| Nampak |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amcor PLC and Nampak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amcor PLC and Nampak
The main advantage of trading using opposite Amcor PLC and Nampak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amcor PLC position performs unexpectedly, Nampak 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 Nampak will offset losses from the drop in Nampak's long position.| Amcor PLC vs. Crown Holdings | Amcor PLC vs. Avery Dennison Corp | Amcor PLC vs. Packaging Corp of | Amcor PLC vs. Sealed Air |
| Nampak vs. Arq Inc | Nampak vs. ArcelorMittal SA ADR | Nampak vs. Sanyo Special Steel | Nampak vs. Olympic Steel |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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