Correlation Between Avery Dennison and SIG Combibloc
Can any of the company-specific risk be diversified away by investing in both Avery Dennison and SIG Combibloc 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 Avery Dennison and SIG Combibloc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avery Dennison Corp and SIG Combibloc Group, you can compare the effects of market volatilities on Avery Dennison and SIG Combibloc 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 Avery Dennison with a short position of SIG Combibloc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avery Dennison and SIG Combibloc.
Diversification Opportunities for Avery Dennison and SIG Combibloc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avery and SIG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Avery Dennison Corp and SIG Combibloc Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIG Combibloc Group and Avery Dennison 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 Avery Dennison Corp are associated (or correlated) with SIG Combibloc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIG Combibloc Group has no effect on the direction of Avery Dennison i.e., Avery Dennison and SIG Combibloc go up and down completely randomly.
Pair Corralation between Avery Dennison and SIG Combibloc
If you would invest (100.00) in SIG Combibloc Group on September 12, 2024 and sell it today you would earn a total of 100.00 from holding SIG Combibloc Group 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 |
Avery Dennison Corp vs. SIG Combibloc Group
Performance |
| Timeline |
| Avery Dennison Corp |
| SIG Combibloc Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Avery Dennison and SIG Combibloc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avery Dennison and SIG Combibloc
The main advantage of trading using opposite Avery Dennison and SIG Combibloc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avery Dennison position performs unexpectedly, SIG Combibloc 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 SIG Combibloc will offset losses from the drop in SIG Combibloc's long position.| Avery Dennison vs. Packaging Corp of | Avery Dennison vs. O I Glass | Avery Dennison vs. Silgan Holdings | Avery Dennison vs. Sealed Air |
| SIG Combibloc vs. Covestro AG | SIG Combibloc vs. Acciona SA | SIG Combibloc vs. Topaz Energy Corp | SIG Combibloc vs. Evonik Industries AG |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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