Correlation Between Tupperware Brands and Crown Holdings

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

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

Diversification Opportunities for Tupperware Brands and Crown Holdings

0.65

Correlation Coefficient

Tupperware Brands  Crown Holdings

Poor diversification

The 3 months correlation between Tupperware and Crown is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tupperware Brands and Crown Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Holdings and Tupperware Brands 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 Tupperware Brands 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 Tupperware Brands i.e., Tupperware Brands and Crown Holdings go up and down completely randomly.

Pair Corralation between Tupperware Brands and Crown Holdings

If you would invest  6.00  in Tupperware Brands on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Tupperware Brands or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.59%
Values	Daily Returns

Tupperware Brands  vs.  Crown Holdings

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.

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 weak performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Tupperware Brands and Crown Holdings

The main advantage of trading using opposite Tupperware Brands and Crown Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tupperware Brands 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 Tupperware Brands 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.