Correlation Between CCL Industries and Silgan Holdings
Can any of the company-specific risk be diversified away by investing in both CCL Industries and Silgan Holdings 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 CCL Industries and Silgan Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCL Industries and Silgan Holdings, you can compare the effects of market volatilities on CCL Industries and Silgan Holdings 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 CCL Industries with a short position of Silgan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCL Industries and Silgan Holdings.
Diversification Opportunities for CCL Industries and Silgan Holdings
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CCL and Silgan is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries and Silgan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgan Holdings and CCL Industries 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 CCL Industries are associated (or correlated) with Silgan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silgan Holdings has no effect on the direction of CCL Industries i.e., CCL Industries and Silgan Holdings go up and down completely randomly.
Pair Corralation between CCL Industries and Silgan Holdings
Assuming the 90 days horizon CCL Industries is expected to under-perform the Silgan Holdings. In addition to that, CCL Industries is 1.45 times more volatile than Silgan Holdings. It trades about -0.23 of its total potential returns per unit of risk. Silgan Holdings is currently generating about 0.53 per unit of volatility. If you would invest 5,174 in Silgan Holdings on September 1, 2024 and sell it today you would earn a total of 579.00 from holding Silgan Holdings or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCL Industries vs. Silgan Holdings
Performance |
| Timeline |
| CCL Industries |
| Silgan Holdings |
CCL Industries and Silgan Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCL Industries and Silgan Holdings
The main advantage of trading using opposite CCL Industries and Silgan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCL Industries position performs unexpectedly, Silgan Holdings 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 Silgan Holdings will offset losses from the drop in Silgan Holdings' long position.| CCL Industries vs. Myers Industries | CCL Industries vs. Silgan Holdings | CCL Industries vs. Pactiv Evergreen | CCL Industries vs. Reynolds Consumer Products |
| Silgan Holdings vs. Pactiv Evergreen | Silgan Holdings vs. Myers Industries | Silgan Holdings vs. Sonoco Products | Silgan Holdings vs. Avery Dennison Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets |