Correlation Between Advanced Container and WestRock

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

By analyzing existing cross correlation between Advanced Container Technologies and WestRock Co, you can compare the effects of market volatilities on Advanced Container and WestRock 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 Advanced Container with a short position of WestRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Container and WestRock.

Diversification Opportunities for Advanced Container and WestRock

-0.28

Correlation Coefficient

Advanced Container  WestRock

Very good diversification

The 3 months correlation between Advanced and WestRock is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Container Technologie and WestRock Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WestRock and Advanced Container 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 Advanced Container Technologies are associated (or correlated) with WestRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WestRock has no effect on the direction of Advanced Container i.e., Advanced Container and WestRock go up and down completely randomly.

Pair Corralation between Advanced Container and WestRock

If you would invest  0.01  in Advanced Container Technologies on October 1, 2024 and sell it today you would earn a total of  0.01  from holding Advanced Container Technologies or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	2.33%
Values	Daily Returns

Advanced Container Technologie  vs.  WestRock Co

Advanced Container

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Container Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Advanced Container showed solid returns over the last few months and may actually be approaching a breakup point.

WestRock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WestRock Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, WestRock is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Advanced Container and WestRock

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

The idea behind Advanced Container Technologies and WestRock Co 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.