Correlation Between Graphic Packaging and Good Natured
Can any of the company-specific risk be diversified away by investing in both Graphic Packaging and Good Natured 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 Graphic Packaging and Good Natured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphic Packaging Holding and good natured Products, you can compare the effects of market volatilities on Graphic Packaging and Good Natured 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 Graphic Packaging with a short position of Good Natured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphic Packaging and Good Natured.
Diversification Opportunities for Graphic Packaging and Good Natured
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Graphic and Good is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Graphic Packaging Holding and good natured Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on good natured Products and Graphic Packaging 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 Graphic Packaging Holding are associated (or correlated) with Good Natured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of good natured Products has no effect on the direction of Graphic Packaging i.e., Graphic Packaging and Good Natured go up and down completely randomly.
Pair Corralation between Graphic Packaging and Good Natured
If you would invest 0.50 in good natured Products on August 25, 2024 and sell it today you would earn a total of 0.00 from holding good natured Products or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Graphic Packaging Holding vs. good natured Products
Performance |
| Timeline |
| Graphic Packaging Holding |
| good natured Products |
Graphic Packaging and Good Natured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphic Packaging and Good Natured
The main advantage of trading using opposite Graphic Packaging and Good Natured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphic Packaging position performs unexpectedly, Good Natured 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 Good Natured will offset losses from the drop in Good Natured's long position.| Graphic Packaging vs. Ball Corporation | Graphic Packaging vs. Silgan Holdings | Graphic Packaging vs. Sonoco Products | Graphic Packaging vs. Reynolds Consumer Products |
| Good Natured vs. DSS Inc | Good Natured vs. Myers Industries | Good Natured vs. O I Glass | Good Natured vs. Pactiv Evergreen |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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