Correlation Between DSS and Tupperware Brands

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

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

Diversification Opportunities for DSS and Tupperware Brands

0.54

Correlation Coefficient

DSS  Tupperware Brands

Very weak diversification

The 3 months correlation between DSS and Tupperware is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding DSS Inc and Tupperware Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tupperware Brands 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 Tupperware Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tupperware Brands has no effect on the direction of DSS i.e., DSS and Tupperware Brands go up and down completely randomly.

Pair Corralation between DSS and Tupperware Brands

Considering the 90-day investment horizon DSS Inc is expected to generate 0.27 times more return on investment than Tupperware Brands. However, DSS Inc is 3.7 times less risky than Tupperware Brands. It trades about -0.08 of its potential returns per unit of risk. Tupperware Brands is currently generating about -0.22 per unit of risk. If you would invest  151.00  in DSS Inc on October 22, 2024 and sell it today you would lose (64.80) from holding DSS Inc or give up 42.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	32.8%
Values	Daily Returns

DSS Inc  vs.  Tupperware Brands

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.

Tupperware Brands

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tupperware Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Tupperware Brands is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with DSS and Tupperware Brands

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

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