Correlation Between Amcor Plc and Good Natured

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

By analyzing existing cross correlation between Amcor plc and Good Natured Products, you can compare the effects of market volatilities on Amcor Plc and Good Natured 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 Amcor Plc with a short position of Good Natured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amcor Plc and Good Natured.

Diversification Opportunities for Amcor Plc and Good Natured

0.0

Correlation Coefficient

Amcor Plc  Good Natured

Pay attention - limited upside

The 3 months correlation between Amcor and Good is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amcor plc and Good Natured Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Good Natured Products and Amcor Plc 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 Amcor plc are associated (or correlated) with Good Natured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Good Natured Products has no effect on the direction of Amcor Plc i.e., Amcor Plc and Good Natured go up and down completely randomly.

Pair Corralation between Amcor Plc and Good Natured

If you would invest  961.00  in Amcor plc on December 28, 2024 and sell it today you would earn a total of  30.00  from holding Amcor plc or generate 3.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Amcor plc  vs.  Good Natured Products

Amcor plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amcor plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, Amcor Plc is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Good Natured Products

Risk-Adjusted Performance

Very Weak

Over the last 90 days Good Natured Products has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Good Natured is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Amcor Plc and Good Natured

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

The idea behind Amcor plc and Good Natured Products 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.