Correlation Between Tupperware Brands and Silgan Holdings
Can any of the company-specific risk be diversified away by investing in both Tupperware Brands 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 Tupperware Brands and Silgan Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tupperware Brands and Silgan Holdings, you can compare the effects of market volatilities on Tupperware Brands 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 Tupperware Brands with a short position of Silgan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tupperware Brands and Silgan Holdings.
Diversification Opportunities for Tupperware Brands and Silgan Holdings
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tupperware and Silgan is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tupperware Brands and Silgan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgan Holdings and Tupperware Brands 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 Tupperware Brands 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 Tupperware Brands i.e., Tupperware Brands and Silgan Holdings go up and down completely randomly.
Pair Corralation between Tupperware Brands and Silgan Holdings
Considering the 90-day investment horizon Tupperware Brands is expected to generate 7.66 times more return on investment than Silgan Holdings. However, Tupperware Brands is 7.66 times more volatile than Silgan Holdings. It trades about 0.01 of its potential returns per unit of risk. Silgan Holdings is currently generating about 0.04 per unit of risk. If you would invest 79.00 in Tupperware Brands on August 29, 2024 and sell it today you would lose (73.00) from holding Tupperware Brands or give up 92.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.79% |
| Values | Daily Returns |
Tupperware Brands vs. Silgan Holdings
Performance |
| Timeline |
| Tupperware Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Silgan Holdings |
Tupperware Brands and Silgan Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tupperware Brands and Silgan Holdings
The main advantage of trading using opposite Tupperware Brands and Silgan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tupperware Brands 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.| Tupperware Brands vs. Millennium Group International | Tupperware Brands vs. Sonoco Products | Tupperware Brands vs. Sealed Air | Tupperware Brands vs. Alliance Creative Gr |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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