Correlation Between Silgan Holdings and Good Natured
Can any of the company-specific risk be diversified away by investing in both Silgan Holdings and Good Natured 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 Silgan Holdings and Good Natured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silgan Holdings and good natured Products, you can compare the effects of market volatilities on Silgan Holdings and Good Natured 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 Silgan Holdings with a short position of Good Natured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silgan Holdings and Good Natured.
Diversification Opportunities for Silgan Holdings and Good Natured
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silgan and Good is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Silgan Holdings and good natured Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on good natured Products and Silgan 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 Silgan Holdings are associated (or correlated) with Good Natured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of good natured Products has no effect on the direction of Silgan Holdings i.e., Silgan Holdings and Good Natured go up and down completely randomly.
Pair Corralation between Silgan Holdings and Good Natured
Given the investment horizon of 90 days Silgan Holdings is expected to generate 0.09 times more return on investment than Good Natured. However, Silgan Holdings is 11.18 times less risky than Good Natured. It trades about 0.11 of its potential returns per unit of risk. good natured Products is currently generating about 0.0 per unit of risk. If you would invest 3,914 in Silgan Holdings on August 25, 2024 and sell it today you would earn a total of 1,739 from holding Silgan Holdings or generate 44.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Silgan Holdings vs. good natured Products
Performance |
| Timeline |
| Silgan Holdings |
| good natured Products |
Silgan Holdings and Good Natured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silgan Holdings and Good Natured
The main advantage of trading using opposite Silgan Holdings and Good Natured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silgan Holdings position performs unexpectedly, Good Natured 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 Good Natured will offset losses from the drop in Good Natured's long position.| Silgan Holdings vs. AptarGroup | Silgan Holdings vs. Sonoco Products | Silgan Holdings vs. Graphic Packaging Holding |
| Good Natured vs. DSS Inc | Good Natured vs. Myers Industries | Good Natured vs. O I Glass | Good Natured vs. Pactiv Evergreen |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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