Correlation Between SIG Combibloc and Ball
Can any of the company-specific risk be diversified away by investing in both SIG Combibloc 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 SIG Combibloc and Ball into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIG Combibloc Group and Ball Corporation, you can compare the effects of market volatilities on SIG Combibloc 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 SIG Combibloc with a short position of Ball. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIG Combibloc and Ball.
Diversification Opportunities for SIG Combibloc and Ball
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SIG and Ball is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding SIG Combibloc Group and Ball Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ball and SIG Combibloc 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 SIG Combibloc Group 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 SIG Combibloc i.e., SIG Combibloc and Ball go up and down completely randomly.
Pair Corralation between SIG Combibloc and Ball
Assuming the 90 days horizon SIG Combibloc Group is expected to under-perform the Ball. In addition to that, SIG Combibloc is 1.24 times more volatile than Ball Corporation. It trades about -0.17 of its total potential returns per unit of risk. Ball Corporation is currently generating about -0.13 per unit of volatility. If you would invest 6,012 in Ball Corporation on September 12, 2024 and sell it today you would lose (304.00) from holding Ball Corporation or give up 5.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIG Combibloc Group vs. Ball Corp.
Performance |
| Timeline |
| SIG Combibloc Group |
| Ball |
SIG Combibloc and Ball Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIG Combibloc and Ball
The main advantage of trading using opposite SIG Combibloc and Ball positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIG Combibloc 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.| SIG Combibloc vs. Covestro AG | SIG Combibloc vs. Acciona SA | SIG Combibloc vs. Topaz Energy Corp | SIG Combibloc vs. Evonik Industries AG |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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