Correlation Between Graphic Packaging and Myers Industries
Can any of the company-specific risk be diversified away by investing in both Graphic Packaging and Myers Industries 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 Graphic Packaging and Myers Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphic Packaging Holding and Myers Industries, you can compare the effects of market volatilities on Graphic Packaging and Myers Industries 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 Graphic Packaging with a short position of Myers Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphic Packaging and Myers Industries.
Diversification Opportunities for Graphic Packaging and Myers Industries
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Graphic and Myers is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Graphic Packaging Holding and Myers Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myers Industries and Graphic Packaging 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 Graphic Packaging Holding are associated (or correlated) with Myers Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myers Industries has no effect on the direction of Graphic Packaging i.e., Graphic Packaging and Myers Industries go up and down completely randomly.
Pair Corralation between Graphic Packaging and Myers Industries
Considering the 90-day investment horizon Graphic Packaging Holding is expected to generate 0.8 times more return on investment than Myers Industries. However, Graphic Packaging Holding is 1.26 times less risky than Myers Industries. It trades about 0.0 of its potential returns per unit of risk. Myers Industries is currently generating about -0.04 per unit of risk. If you would invest 2,727 in Graphic Packaging Holding on January 20, 2024 and sell it today you would lose (6.00) from holding Graphic Packaging Holding or give up 0.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Graphic Packaging Holding vs. Myers Industries
Performance |
Timeline |
Graphic Packaging Holding |
Myers Industries |
Graphic Packaging and Myers Industries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Graphic Packaging and Myers Industries
The main advantage of trading using opposite Graphic Packaging and Myers Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphic Packaging position performs unexpectedly, Myers Industries 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 Myers Industries will offset losses from the drop in Myers Industries' long position.Graphic Packaging vs. WestRock Co | Graphic Packaging vs. Sonoco Products | Graphic Packaging vs. Reynolds Consumer Products | Graphic Packaging vs. Ball Corporation |
Myers Industries vs. Greif Bros | Myers Industries vs. Karat Packaging | Myers Industries vs. Reynolds Consumer Products | Myers Industries vs. Pactiv Evergreen |
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.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Positions Ratings 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 | |
Global Correlations Find global opportunities by holding instruments from different markets |