Correlation Between Silgan Holdings and Iterum Therapeutics

Can any of the company-specific risk be diversified away by investing in both Silgan Holdings and Iterum Therapeutics 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 Silgan Holdings and Iterum Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Silgan Holdings and Iterum Therapeutics PLC, you can compare the effects of market volatilities on Silgan Holdings and Iterum Therapeutics 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 Silgan Holdings with a short position of Iterum Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silgan Holdings and Iterum Therapeutics.

Diversification Opportunities for Silgan Holdings and Iterum Therapeutics

0.74

Correlation Coefficient

Silgan Holdings  Iterum Therapeutics

Poor diversification

The 3 months correlation between Silgan and Iterum is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Silgan Holdings and Iterum Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iterum Therapeutics PLC and Silgan Holdings 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 Silgan Holdings are associated (or correlated) with Iterum Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iterum Therapeutics PLC has no effect on the direction of Silgan Holdings i.e., Silgan Holdings and Iterum Therapeutics go up and down completely randomly.

Pair Corralation between Silgan Holdings and Iterum Therapeutics

Given the investment horizon of 90 days Silgan Holdings is expected to generate 0.24 times more return on investment than Iterum Therapeutics. However, Silgan Holdings is 4.12 times less risky than Iterum Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Iterum Therapeutics PLC is currently generating about 0.0 per unit of risk. If you would invest  4,032  in Silgan Holdings on July 13, 2025 and sell it today you would earn a total of  180.00  from holding Silgan Holdings or generate 4.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Silgan Holdings  vs.  Iterum Therapeutics PLC

Silgan Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Silgan Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Iterum Therapeutics PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days Iterum Therapeutics PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Silgan Holdings and Iterum Therapeutics

The main advantage of trading using opposite Silgan Holdings and Iterum Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silgan Holdings position performs unexpectedly, Iterum Therapeutics 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 Iterum Therapeutics will offset losses from the drop in Iterum Therapeutics' long position.

The idea behind Silgan Holdings and Iterum Therapeutics PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..