Correlation Between DSS and Ball
Can any of the company-specific risk be diversified away by investing in both DSS and Ball 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 DSS and Ball into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSS Inc and Ball Corporation, you can compare the effects of market volatilities on DSS and Ball 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 DSS with a short position of Ball. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSS and Ball.
Diversification Opportunities for DSS and Ball
Very weak diversification
The 3 months correlation between DSS and Ball is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding DSS Inc and Ball Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ball and DSS 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 DSS Inc are associated (or correlated) with Ball. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ball has no effect on the direction of DSS i.e., DSS and Ball go up and down completely randomly.
Pair Corralation between DSS and Ball
Considering the 90-day investment horizon DSS Inc is expected to under-perform the Ball. In addition to that, DSS is 2.52 times more volatile than Ball Corporation. It trades about -0.04 of its total potential returns per unit of risk. Ball Corporation is currently generating about 0.03 per unit of volatility. If you would invest 5,255 in Ball Corporation on September 3, 2024 and sell it today you would earn a total of 961.00 from holding Ball Corporation or generate 18.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSS Inc vs. Ball Corp.
Performance |
| Timeline |
| DSS Inc |
| Ball |
DSS and Ball Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSS and Ball
The main advantage of trading using opposite DSS and Ball positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSS position performs unexpectedly, Ball 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 Ball will offset losses from the drop in Ball's long position.The idea behind DSS Inc and Ball Corporation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ball vs. Graphic Packaging Holding | Ball vs. Silgan Holdings | Ball vs. Sonoco Products | Ball vs. Reynolds Consumer Products |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |