Correlation Between Myers Industries and CCL Industries
Can any of the company-specific risk be diversified away by investing in both Myers Industries and CCL Industries 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 Myers Industries and CCL Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myers Industries and CCL Industries, you can compare the effects of market volatilities on Myers Industries and CCL Industries 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 Myers Industries with a short position of CCL Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myers Industries and CCL Industries.
Diversification Opportunities for Myers Industries and CCL Industries
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Myers and CCL is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Myers Industries and CCL Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCL Industries and Myers 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 Myers Industries are associated (or correlated) with CCL Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCL Industries has no effect on the direction of Myers Industries i.e., Myers Industries and CCL Industries go up and down completely randomly.
Pair Corralation between Myers Industries and CCL Industries
Considering the 90-day investment horizon Myers Industries is expected to under-perform the CCL Industries. In addition to that, Myers Industries is 1.18 times more volatile than CCL Industries. It trades about -0.05 of its total potential returns per unit of risk. CCL Industries is currently generating about 0.04 per unit of volatility. If you would invest 4,296 in CCL Industries on August 30, 2024 and sell it today you would earn a total of 1,156 from holding CCL Industries or generate 26.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.11% |
| Values | Daily Returns |
Myers Industries vs. CCL Industries
Performance |
| Timeline |
| Myers Industries |
| CCL Industries |
Myers Industries and CCL Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myers Industries and CCL Industries
The main advantage of trading using opposite Myers Industries and CCL Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myers Industries position performs unexpectedly, CCL Industries 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 CCL Industries will offset losses from the drop in CCL Industries' long position.| Myers Industries vs. O I Glass | Myers Industries vs. Pactiv Evergreen | Myers Industries vs. Greif Bros | Myers Industries vs. Crown Holdings |
| CCL Industries vs. Myers Industries | CCL Industries vs. Silgan Holdings | CCL Industries vs. Pactiv Evergreen | CCL Industries 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |