Correlation Between Graphic Packaging and Ball
Can any of the company-specific risk be diversified away by investing in both Graphic Packaging and Ball 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 Ball 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 Ball Corporation, you can compare the effects of market volatilities on Graphic Packaging and Ball 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 Ball. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphic Packaging and Ball.
Diversification Opportunities for Graphic Packaging and Ball
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Graphic and Ball is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Graphic Packaging Holding and Ball Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ball 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 Ball. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ball has no effect on the direction of Graphic Packaging i.e., Graphic Packaging and Ball go up and down completely randomly.
Pair Corralation between Graphic Packaging and Ball
If you would invest (100.00) in Ball Corporation on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Ball Corporation or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Graphic Packaging Holding vs. Ball Corp.
Performance |
| Timeline |
| Graphic Packaging Holding |
| Ball |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Graphic Packaging and Ball Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphic Packaging and Ball
The main advantage of trading using opposite Graphic Packaging and Ball positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphic Packaging position performs unexpectedly, Ball 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 Ball will offset losses from the drop in Ball's long position.| Graphic Packaging vs. Reynolds Consumer Products | Graphic Packaging vs. Ball Corporation | Graphic Packaging vs. Crown Holdings | Graphic Packaging vs. Myers Industries |
| Ball vs. Glacier Media | Ball vs. Skechers USA | Ball vs. UbiSoft Entertainment | Ball vs. Mannatech Incorporated |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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