Correlation Between Ranpak Holdings and Magnera Corp
Can any of the company-specific risk be diversified away by investing in both Ranpak Holdings and Magnera Corp 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 Ranpak Holdings and Magnera Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ranpak Holdings Corp and Magnera Corp placeholder, you can compare the effects of market volatilities on Ranpak Holdings and Magnera Corp 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 Ranpak Holdings with a short position of Magnera Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ranpak Holdings and Magnera Corp.
Diversification Opportunities for Ranpak Holdings and Magnera Corp
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ranpak and Magnera is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ranpak Holdings Corp and Magnera Corp placeholder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnera Corp placeholder and Ranpak 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 Ranpak Holdings Corp are associated (or correlated) with Magnera Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnera Corp placeholder has no effect on the direction of Ranpak Holdings i.e., Ranpak Holdings and Magnera Corp go up and down completely randomly.
Pair Corralation between Ranpak Holdings and Magnera Corp
Given the investment horizon of 90 days Ranpak Holdings Corp is expected to generate 0.74 times more return on investment than Magnera Corp. However, Ranpak Holdings Corp is 1.35 times less risky than Magnera Corp. It trades about 0.04 of its potential returns per unit of risk. Magnera Corp placeholder is currently generating about 0.0 per unit of risk. If you would invest 526.00 in Ranpak Holdings Corp on September 3, 2024 and sell it today you would earn a total of 253.00 from holding Ranpak Holdings Corp or generate 48.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ranpak Holdings Corp vs. Magnera Corp placeholder
Performance |
| Timeline |
| Ranpak Holdings Corp |
| Magnera Corp placeholder |
Ranpak Holdings and Magnera Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ranpak Holdings and Magnera Corp
The main advantage of trading using opposite Ranpak Holdings and Magnera Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ranpak Holdings position performs unexpectedly, Magnera Corp 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 Magnera Corp will offset losses from the drop in Magnera Corp's long position.| Ranpak Holdings vs. Greif Bros | Ranpak Holdings vs. Karat Packaging | Ranpak Holdings vs. Reynolds Consumer Products | Ranpak Holdings vs. Silgan Holdings |
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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.
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