Correlation Between Tefron and Silgan Holdings
Can any of the company-specific risk be diversified away by investing in both Tefron and Silgan Holdings 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 Tefron and Silgan Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tefron and Silgan Holdings, you can compare the effects of market volatilities on Tefron and Silgan Holdings 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 Tefron with a short position of Silgan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tefron and Silgan Holdings.
Diversification Opportunities for Tefron and Silgan Holdings
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tefron and Silgan is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tefron and Silgan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgan Holdings and Tefron 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 Tefron are associated (or correlated) with Silgan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silgan Holdings has no effect on the direction of Tefron i.e., Tefron and Silgan Holdings go up and down completely randomly.
Pair Corralation between Tefron and Silgan Holdings
If you would invest 5,095 in Silgan Holdings on August 24, 2024 and sell it today you would earn a total of 465.00 from holding Silgan Holdings or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Tefron vs. Silgan Holdings
Performance |
| Timeline |
| Tefron |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Silgan Holdings |
Tefron and Silgan Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tefron and Silgan Holdings
The main advantage of trading using opposite Tefron and Silgan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tefron position performs unexpectedly, Silgan Holdings 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 Silgan Holdings will offset losses from the drop in Silgan Holdings' long position.| Tefron vs. Sonida Senior Living | Tefron vs. Merit Medical Systems | Tefron vs. US Global Investors | Tefron vs. Valneva SE ADR |
| Silgan Holdings vs. Pactiv Evergreen | Silgan Holdings vs. Myers Industries | Silgan Holdings vs. Sonoco Products | Silgan Holdings vs. Avery Dennison Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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