Correlation Between Graphic Packaging and Silgan Holdings
Can any of the company-specific risk be diversified away by investing in both Graphic Packaging 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 Graphic Packaging and Silgan Holdings 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 Silgan Holdings, you can compare the effects of market volatilities on Graphic Packaging 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 Graphic Packaging with a short position of Silgan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphic Packaging and Silgan Holdings.
Diversification Opportunities for Graphic Packaging and Silgan Holdings
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graphic and Silgan is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Graphic Packaging Holding and Silgan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgan Holdings 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 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 Graphic Packaging i.e., Graphic Packaging and Silgan Holdings go up and down completely randomly.
Pair Corralation between Graphic Packaging and Silgan Holdings
Considering the 90-day investment horizon Graphic Packaging Holding is expected to under-perform the Silgan Holdings. In addition to that, Graphic Packaging is 1.42 times more volatile than Silgan Holdings. It trades about -0.06 of its total potential returns per unit of risk. Silgan Holdings is currently generating about 0.44 per unit of volatility. If you would invest 5,116 in Silgan Holdings on August 27, 2024 and sell it today you would earn a total of 596.00 from holding Silgan Holdings or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphic Packaging Holding vs. Silgan Holdings
Performance |
| Timeline |
| Graphic Packaging Holding |
| Silgan Holdings |
Graphic Packaging and Silgan Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphic Packaging and Silgan Holdings
The main advantage of trading using opposite Graphic Packaging and Silgan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphic Packaging 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.| Graphic Packaging vs. International Paper | Graphic Packaging vs. Sonoco Products | Graphic Packaging vs. Reynolds Consumer Products | Graphic Packaging vs. Ball Corporation |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |