Correlation Between WestRock and Amcor PLC
Can any of the company-specific risk be diversified away by investing in both WestRock and Amcor PLC 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 WestRock and Amcor PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WestRock Co and Amcor PLC, you can compare the effects of market volatilities on WestRock and Amcor PLC 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 WestRock with a short position of Amcor PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of WestRock and Amcor PLC.
Diversification Opportunities for WestRock and Amcor PLC
Pay attention - limited upside
The 3 months correlation between WestRock and Amcor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WestRock Co and Amcor PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor PLC and WestRock 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 WestRock Co are associated (or correlated) with Amcor PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor PLC has no effect on the direction of WestRock i.e., WestRock and Amcor PLC go up and down completely randomly.
Pair Corralation between WestRock and Amcor PLC
If you would invest 955.00 in Amcor PLC on November 9, 2024 and sell it today you would earn a total of 48.00 from holding Amcor PLC or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
WestRock Co vs. Amcor PLC
Performance |
| Timeline |
| WestRock |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Amcor PLC |
WestRock and Amcor PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WestRock and Amcor PLC
The main advantage of trading using opposite WestRock and Amcor PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WestRock position performs unexpectedly, Amcor PLC 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 Amcor PLC will offset losses from the drop in Amcor PLC's long position.| WestRock vs. Packaging Corp of | WestRock vs. Sealed Air | WestRock vs. Fortive Corp | WestRock vs. LKQ Corporation |
| Amcor PLC vs. Crown Holdings | Amcor PLC vs. Avery Dennison Corp | Amcor PLC vs. Packaging Corp of | Amcor PLC vs. Sealed Air |
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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