Correlation Between Amcor PLC and O I

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

By analyzing existing cross correlation between Amcor PLC and O I Glass, you can compare the effects of market volatilities on Amcor PLC and O I 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 O I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amcor PLC and O I.

Diversification Opportunities for Amcor PLC and O I

0.62

Correlation Coefficient

Amcor PLC  O I

Poor diversification

The 3 months correlation between Amcor and O I is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amcor PLC and O I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O I Glass 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 O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O I Glass has no effect on the direction of Amcor PLC i.e., Amcor PLC and O I go up and down completely randomly.

Pair Corralation between Amcor PLC and O I

Given the investment horizon of 90 days Amcor PLC is expected to generate 10.18 times less return on investment than O I. But when comparing it to its historical volatility, Amcor PLC is 2.09 times less risky than O I. It trades about 0.02 of its potential returns per unit of risk. O I Glass is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,033  in O I Glass on December 26, 2024 and sell it today you would earn a total of  152.00  from holding O I Glass or generate 14.71% return on investment over 90 days.

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

Amcor PLC  vs.  O I Glass

Amcor PLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amcor PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Amcor PLC is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

O I Glass

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in O I Glass are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile forward indicators, O I demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amcor PLC and O I

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

The idea behind Amcor PLC and O I Glass 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.