Correlation Between Silgan Holdings and O I

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

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

Diversification Opportunities for Silgan Holdings and O I

0.12

Correlation Coefficient

Silgan Holdings  O I

Average diversification

The 3 months correlation between Silgan and O I is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Silgan Holdings and O I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O I Glass and Silgan 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 Silgan Holdings are associated (or correlated) with O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O I Glass has no effect on the direction of Silgan Holdings i.e., Silgan Holdings and O I go up and down completely randomly.

Pair Corralation between Silgan Holdings and O I

Given the investment horizon of 90 days Silgan Holdings is expected to generate 0.57 times more return on investment than O I. However, Silgan Holdings is 1.77 times less risky than O I. It trades about 0.02 of its potential returns per unit of risk. O I Glass is currently generating about -0.02 per unit of risk. If you would invest  5,086  in Silgan Holdings on September 3, 2024 and sell it today you would earn a total of  636.00  from holding Silgan Holdings or generate 12.5% return on investment over 90 days.

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

Silgan Holdings  vs.  O I Glass

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 January 2025.

O I Glass

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in O I Glass are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, O I is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Silgan Holdings and O I

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

The idea behind Silgan Holdings and O I Glass 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.