Correlation Between Crown Holdings and WestRock

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

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

Diversification Opportunities for Crown Holdings and WestRock

0.0

Correlation Coefficient

Crown Holdings  WestRock

Pay attention - limited upside

The 3 months correlation between Crown and WestRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Crown Holdings and WestRock Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WestRock and Crown Holdings 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 Crown Holdings 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 Crown Holdings i.e., Crown Holdings and WestRock go up and down completely randomly.

Pair Corralation between Crown Holdings and WestRock

If you would invest  8,165  in Crown Holdings on December 28, 2024 and sell it today you would earn a total of  655.00  from holding Crown Holdings or generate 8.02% return on investment over 90 days.

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

Crown Holdings  vs.  WestRock Co

Crown Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Crown Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Crown Holdings may actually be approaching a critical reversion point that can send shares even higher in April 2025.

WestRock

Risk-Adjusted Performance

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 Crown Holdings and WestRock

The main advantage of trading using opposite Crown Holdings and WestRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Holdings 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 Crown Holdings 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .