Correlation Between Crown Holdings and Tupperware Brands
Can any of the company-specific risk be diversified away by investing in both Crown Holdings and Tupperware Brands 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 Crown Holdings and Tupperware Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crown Holdings and Tupperware Brands, you can compare the effects of market volatilities on Crown Holdings and Tupperware Brands 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 Crown Holdings with a short position of Tupperware Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Holdings and Tupperware Brands.
Diversification Opportunities for Crown Holdings and Tupperware Brands
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crown and Tupperware is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Crown Holdings and Tupperware Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tupperware Brands and Crown Holdings 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 Crown Holdings are associated (or correlated) with Tupperware Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tupperware Brands has no effect on the direction of Crown Holdings i.e., Crown Holdings and Tupperware Brands go up and down completely randomly.
Pair Corralation between Crown Holdings and Tupperware Brands
Considering the 90-day investment horizon Crown Holdings is expected to generate 0.15 times more return on investment than Tupperware Brands. However, Crown Holdings is 6.61 times less risky than Tupperware Brands. It trades about 0.03 of its potential returns per unit of risk. Tupperware Brands is currently generating about -0.02 per unit of risk. If you would invest 7,958 in Crown Holdings on August 29, 2024 and sell it today you would earn a total of 1,264 from holding Crown Holdings or generate 15.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.3% |
| Values | Daily Returns |
Crown Holdings vs. Tupperware Brands
Performance |
| Timeline |
| Crown Holdings |
| Tupperware Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Crown Holdings and Tupperware Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Holdings and Tupperware Brands
The main advantage of trading using opposite Crown Holdings and Tupperware Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Holdings position performs unexpectedly, Tupperware Brands 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 Tupperware Brands will offset losses from the drop in Tupperware Brands' long position.| Crown Holdings vs. Amcor PLC | Crown Holdings vs. Avery Dennison Corp | Crown Holdings vs. Packaging Corp of | Crown Holdings vs. Sealed Air |
| Tupperware Brands vs. Millennium Group International | Tupperware Brands vs. Sonoco Products | Tupperware Brands vs. Sealed Air | Tupperware Brands vs. Alliance Creative Gr |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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