Correlation Between Ball and WestRock
Can any of the company-specific risk be diversified away by investing in both Ball 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 Ball and WestRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ball Corporation and WestRock Co, you can compare the effects of market volatilities on Ball 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 Ball with a short position of WestRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ball and WestRock.
Diversification Opportunities for Ball and WestRock
Pay attention - limited upside
The 3 months correlation between Ball and WestRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ball Corp. and WestRock Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WestRock 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 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 Ball i.e., Ball and WestRock go up and down completely randomly.
Pair Corralation between Ball and WestRock
If you would invest 5,120 in Ball Corporation on December 2, 2024 and sell it today you would earn a total of 149.00 from holding Ball Corporation or generate 2.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Ball Corp. vs. WestRock Co
Performance |
Timeline |
Ball |
WestRock |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Ball and WestRock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ball and WestRock
The main advantage of trading using opposite Ball and WestRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ball 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.Ball vs. Graphic Packaging Holding | Ball vs. Silgan Holdings | Ball vs. Sonoco Products | Ball vs. Reynolds Consumer Products |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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