Correlation Between Myers Industries and Crown Holdings
Can any of the company-specific risk be diversified away by investing in both Myers Industries and Crown 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 Myers Industries and Crown Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myers Industries and Crown Holdings, you can compare the effects of market volatilities on Myers Industries and Crown 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 Myers Industries with a short position of Crown Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myers Industries and Crown Holdings.
Diversification Opportunities for Myers Industries and Crown Holdings
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Myers and Crown is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Myers Industries and Crown Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Holdings 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 Crown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Holdings has no effect on the direction of Myers Industries i.e., Myers Industries and Crown Holdings go up and down completely randomly.
Pair Corralation between Myers Industries and Crown Holdings
Considering the 90-day investment horizon Myers Industries is expected to under-perform the Crown Holdings. In addition to that, Myers Industries is 2.95 times more volatile than Crown Holdings. It trades about -0.14 of its total potential returns per unit of risk. Crown Holdings is currently generating about -0.1 per unit of volatility. If you would invest 9,482 in Crown Holdings on August 27, 2024 and sell it today you would lose (220.00) from holding Crown Holdings or give up 2.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myers Industries vs. Crown Holdings
Performance |
| Timeline |
| Myers Industries |
| Crown Holdings |
Myers Industries and Crown Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myers Industries and Crown Holdings
The main advantage of trading using opposite Myers Industries and Crown Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myers Industries position performs unexpectedly, Crown 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 Crown Holdings will offset losses from the drop in Crown Holdings' long position.| Myers Industries vs. O I Glass | Myers Industries vs. Pactiv Evergreen | Myers Industries vs. Greif Bros | Myers Industries vs. Crown Holdings |
| Crown Holdings vs. AptarGroup | Crown Holdings vs. Sonoco Products | Crown Holdings vs. Graphic Packaging Holding |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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