Correlation Between Sonoco Products and Greif Bros
Can any of the company-specific risk be diversified away by investing in both Sonoco Products and Greif Bros 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 Bros 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 Bros, you can compare the effects of market volatilities on Sonoco Products and Greif Bros 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 Bros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonoco Products and Greif Bros.
Diversification Opportunities for Sonoco Products and Greif Bros
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sonoco and Greif is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sonoco Products and Greif Bros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif Bros 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 Bros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greif Bros has no effect on the direction of Sonoco Products i.e., Sonoco Products and Greif Bros go up and down completely randomly.
Pair Corralation between Sonoco Products and Greif Bros
Considering the 90-day investment horizon Sonoco Products is expected to under-perform the Greif Bros. But the stock apears to be less risky and, when comparing its historical volatility, Sonoco Products is 1.33 times less risky than Greif Bros. The stock trades about -0.03 of its potential returns per unit of risk. The Greif Bros is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,284 in Greif Bros on August 27, 2024 and sell it today you would earn a total of 846.00 from holding Greif Bros or generate 13.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonoco Products vs. Greif Bros
Performance |
| Timeline |
| Sonoco Products |
| Greif Bros |
Sonoco Products and Greif Bros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonoco Products and Greif Bros
The main advantage of trading using opposite Sonoco Products and Greif Bros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonoco Products position performs unexpectedly, Greif Bros 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 Bros will offset losses from the drop in Greif Bros' long position.| Sonoco Products vs. AptarGroup | Sonoco Products vs. Silgan Holdings | Sonoco Products vs. RPM International | Sonoco Products vs. Packaging Corp of |
| Greif Bros vs. Silgan Holdings | Greif Bros vs. AptarGroup | Greif Bros vs. Sonoco Products | Greif Bros vs. Graphic Packaging Holding |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| 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 | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |