Correlation Between Ball and Good Natured

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

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

Diversification Opportunities for Ball and Good Natured

0.0

Correlation Coefficient

Ball  Good Natured

Pay attention - limited upside

The 3 months correlation between Ball and Good is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ball Corp. 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 Ball 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 Ball Corporation 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 Ball i.e., Ball and Good Natured go up and down completely randomly.

Pair Corralation between Ball and Good Natured

If you would invest  5,338  in Ball Corporation on November 20, 2024 and sell it today you would lose (353.00) from holding Ball Corporation or give up 6.61% of portfolio value over 90 days.

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

Ball Corp.  vs.  Good Natured Products

Ball

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ball Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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 Ball and Good Natured

The main advantage of trading using opposite Ball and Good Natured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ball 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 Ball Corporation 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.