Correlation Between DSS and Crown Holdings

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

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

Diversification Opportunities for DSS and Crown Holdings

0.76

Correlation Coefficient

DSS  Crown Holdings

Poor diversification

The 3 months correlation between DSS and Crown is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding DSS Inc and Crown Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Holdings and DSS 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 DSS Inc are associated (or correlated) with Crown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Holdings has no effect on the direction of DSS i.e., DSS and Crown Holdings go up and down completely randomly.

Pair Corralation between DSS and Crown Holdings

Considering the 90-day investment horizon DSS Inc is expected to under-perform the Crown Holdings. In addition to that, DSS is 3.79 times more volatile than Crown Holdings. It trades about -0.08 of its total potential returns per unit of risk. Crown Holdings is currently generating about 0.01 per unit of volatility. If you would invest  8,456  in Crown Holdings on October 22, 2024 and sell it today you would earn a total of  100.00  from holding Crown Holdings or generate 1.18% return on investment over 90 days.

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

DSS Inc  vs.  Crown Holdings

DSS Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DSS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Crown Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crown Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with DSS and Crown Holdings

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

The idea behind DSS Inc and Crown Holdings 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.