Correlation Between Eightco Holdings and Ball
Can any of the company-specific risk be diversified away by investing in both Eightco Holdings 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 Eightco Holdings and Ball into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eightco Holdings and Ball Corporation, you can compare the effects of market volatilities on Eightco Holdings 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 Eightco Holdings with a short position of Ball. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eightco Holdings and Ball.
Diversification Opportunities for Eightco Holdings and Ball
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eightco and Ball is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eightco Holdings and Ball Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ball and Eightco Holdings 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 Eightco Holdings 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 Eightco Holdings i.e., Eightco Holdings and Ball go up and down completely randomly.
Pair Corralation between Eightco Holdings and Ball
Given the investment horizon of 90 days Eightco Holdings is expected to generate 25.59 times more return on investment than Ball. However, Eightco Holdings is 25.59 times more volatile than Ball Corporation. It trades about 0.04 of its potential returns per unit of risk. Ball Corporation is currently generating about 0.03 per unit of risk. If you would invest 129.00 in Eightco Holdings on August 28, 2024 and sell it today you would earn a total of 56.00 from holding Eightco Holdings or generate 43.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eightco Holdings vs. Ball Corp.
Performance |
| Timeline |
| Eightco Holdings |
| Ball |
Eightco Holdings and Ball Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eightco Holdings and Ball
The main advantage of trading using opposite Eightco Holdings and Ball positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eightco Holdings 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.| Eightco Holdings vs. Ardagh Metal Packaging | Eightco Holdings vs. Avery Dennison Corp | Eightco Holdings vs. Amcor PLC | Eightco Holdings vs. Packaging Corp of |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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