Correlation Between Silgan Holdings and WestRock
Can any of the company-specific risk be diversified away by investing in both Silgan Holdings and WestRock 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 WestRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silgan Holdings and WestRock Co, you can compare the effects of market volatilities on Silgan Holdings and WestRock 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 WestRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silgan Holdings and WestRock.
Diversification Opportunities for Silgan Holdings and WestRock
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Silgan and WestRock is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Silgan Holdings and WestRock Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WestRock 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 WestRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WestRock has no effect on the direction of Silgan Holdings i.e., Silgan Holdings and WestRock go up and down completely randomly.
Pair Corralation between Silgan Holdings and WestRock
If you would invest 5,205 in Silgan Holdings on November 1, 2024 and sell it today you would earn a total of 373.00 from holding Silgan Holdings or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Silgan Holdings vs. WestRock Co
Performance |
| Timeline |
| Silgan Holdings |
| WestRock |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Silgan Holdings and WestRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silgan Holdings and WestRock
The main advantage of trading using opposite Silgan Holdings and WestRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silgan Holdings position performs unexpectedly, WestRock 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 WestRock will offset losses from the drop in WestRock's long position.| Silgan Holdings vs. Pactiv Evergreen | Silgan Holdings vs. Myers Industries | Silgan Holdings vs. Sonoco Products | Silgan Holdings vs. Avery Dennison Corp |
| WestRock vs. Packaging Corp of | WestRock vs. Sealed Air | WestRock vs. Fortive Corp | WestRock vs. LKQ Corporation |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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