Correlation Between Smurfit Kappa and WINDSTREAM HLDGS
Can any of the company-specific risk be diversified away by investing in both Smurfit Kappa and WINDSTREAM HLDGS 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 Smurfit Kappa and WINDSTREAM HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smurfit Kappa Group and WINDSTREAM HLDGS, you can compare the effects of market volatilities on Smurfit Kappa and WINDSTREAM HLDGS 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 Smurfit Kappa with a short position of WINDSTREAM HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smurfit Kappa and WINDSTREAM HLDGS.
Diversification Opportunities for Smurfit Kappa and WINDSTREAM HLDGS
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Smurfit and WINDSTREAM is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Smurfit Kappa Group and WINDSTREAM HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WINDSTREAM HLDGS and Smurfit Kappa 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 Smurfit Kappa Group are associated (or correlated) with WINDSTREAM HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WINDSTREAM HLDGS has no effect on the direction of Smurfit Kappa i.e., Smurfit Kappa and WINDSTREAM HLDGS go up and down completely randomly.
Pair Corralation between Smurfit Kappa and WINDSTREAM HLDGS
Assuming the 90 days horizon Smurfit Kappa Group is expected to generate 0.33 times more return on investment than WINDSTREAM HLDGS. However, Smurfit Kappa Group is 3.06 times less risky than WINDSTREAM HLDGS. It trades about 0.09 of its potential returns per unit of risk. WINDSTREAM HLDGS is currently generating about -0.18 per unit of risk. If you would invest 4,432 in Smurfit Kappa Group on September 29, 2024 and sell it today you would earn a total of 628.00 from holding Smurfit Kappa Group or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smurfit Kappa Group vs. WINDSTREAM HLDGS
Performance |
| Timeline |
| Smurfit Kappa Group |
| WINDSTREAM HLDGS |
Smurfit Kappa and WINDSTREAM HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smurfit Kappa and WINDSTREAM HLDGS
The main advantage of trading using opposite Smurfit Kappa and WINDSTREAM HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smurfit Kappa position performs unexpectedly, WINDSTREAM HLDGS 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 WINDSTREAM HLDGS will offset losses from the drop in WINDSTREAM HLDGS's long position.| Smurfit Kappa vs. Amcor plc | Smurfit Kappa vs. Amcor plc | Smurfit Kappa vs. Packaging of | Smurfit Kappa vs. Crown Holdings |
| WINDSTREAM HLDGS vs. Apple Inc | WINDSTREAM HLDGS vs. Apple Inc | WINDSTREAM HLDGS vs. Apple Inc | WINDSTREAM HLDGS vs. Apple Inc |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |