Correlation Between Sonoco Products and Greif
Can any of the company-specific risk be diversified away by investing in both Sonoco Products and Greif 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 Sonoco Products and Greif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonoco Products and Greif Inc, you can compare the effects of market volatilities on Sonoco Products and Greif 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 Sonoco Products with a short position of Greif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonoco Products and Greif.
Diversification Opportunities for Sonoco Products and Greif
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sonoco and Greif is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sonoco Products and Greif Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif Inc and Sonoco Products 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 Sonoco Products are associated (or correlated) with Greif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greif Inc has no effect on the direction of Sonoco Products i.e., Sonoco Products and Greif go up and down completely randomly.
Pair Corralation between Sonoco Products and Greif
Considering the 90-day investment horizon Sonoco Products is expected to under-perform the Greif. But the stock apears to be less risky and, when comparing its historical volatility, Sonoco Products is 1.53 times less risky than Greif. The stock trades about -0.06 of its potential returns per unit of risk. The Greif Inc is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 6,762 in Greif Inc on August 28, 2024 and sell it today you would earn a total of 797.00 from holding Greif Inc or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonoco Products vs. Greif Inc
Performance |
| Timeline |
| Sonoco Products |
| Greif Inc |
Sonoco Products and Greif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonoco Products and Greif
The main advantage of trading using opposite Sonoco Products and Greif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonoco Products position performs unexpectedly, Greif 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 Greif will offset losses from the drop in Greif's long position.| Sonoco Products vs. AptarGroup | Sonoco Products vs. Silgan Holdings | Sonoco Products vs. RPM International | Sonoco Products vs. Packaging Corp of |
| Greif vs. Pactiv Evergreen | Greif vs. Myers Industries | Greif vs. Silgan Holdings | Greif vs. Sonoco 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |