Correlation Between Eightco Holdings and Graphic Packaging
Can any of the company-specific risk be diversified away by investing in both Eightco Holdings and Graphic Packaging 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 Graphic Packaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eightco Holdings and Graphic Packaging Holding, you can compare the effects of market volatilities on Eightco Holdings and Graphic Packaging 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 Graphic Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eightco Holdings and Graphic Packaging.
Diversification Opportunities for Eightco Holdings and Graphic Packaging
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eightco and Graphic is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Eightco Holdings and Graphic Packaging Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging Holding 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 Graphic Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging Holding has no effect on the direction of Eightco Holdings i.e., Eightco Holdings and Graphic Packaging go up and down completely randomly.
Pair Corralation between Eightco Holdings and Graphic Packaging
Given the investment horizon of 90 days Eightco Holdings is expected to under-perform the Graphic Packaging. In addition to that, Eightco Holdings is 4.68 times more volatile than Graphic Packaging Holding. It trades about -0.03 of its total potential returns per unit of risk. Graphic Packaging Holding is currently generating about 0.03 per unit of volatility. If you would invest 2,534 in Graphic Packaging Holding on August 29, 2024 and sell it today you would earn a total of 427.00 from holding Graphic Packaging Holding or generate 16.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eightco Holdings vs. Graphic Packaging Holding
Performance |
| Timeline |
| Eightco Holdings |
| Graphic Packaging Holding |
Eightco Holdings and Graphic Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eightco Holdings and Graphic Packaging
The main advantage of trading using opposite Eightco Holdings and Graphic Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eightco Holdings position performs unexpectedly, Graphic Packaging 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 Graphic Packaging will offset losses from the drop in Graphic Packaging'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 |
| Graphic Packaging vs. Ball Corporation | Graphic Packaging vs. Silgan Holdings | Graphic Packaging vs. Sonoco Products | Graphic Packaging 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |