Correlation Between DSS and Silgan Holdings

Can any of the company-specific risk be diversified away by investing in both DSS and Silgan 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 Silgan 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 Silgan Holdings, you can compare the effects of market volatilities on DSS and Silgan 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 Silgan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSS and Silgan Holdings.

Diversification Opportunities for DSS and Silgan Holdings

-0.8

Correlation Coefficient

DSS  Silgan Holdings

Pay attention - limited upside

The 3 months correlation between DSS and Silgan is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding DSS Inc and Silgan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgan 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 Silgan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silgan Holdings has no effect on the direction of DSS i.e., DSS and Silgan Holdings go up and down completely randomly.

Pair Corralation between DSS and Silgan Holdings

Considering the 90-day investment horizon DSS Inc is expected to under-perform the Silgan Holdings. In addition to that, DSS is 3.05 times more volatile than Silgan Holdings. It trades about -0.04 of its total potential returns per unit of risk. Silgan Holdings is currently generating about 0.02 per unit of volatility. If you would invest  5,105  in Silgan Holdings on August 31, 2024 and sell it today you would earn a total of  640.00  from holding Silgan Holdings or generate 12.54% return on investment over 90 days.

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

DSS Inc  vs.  Silgan 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 December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Silgan Holdings

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Silgan Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Silgan Holdings may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with DSS and Silgan Holdings

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

The idea behind DSS Inc and Silgan 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.