Correlation Between WestRock and O I

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

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

Diversification Opportunities for WestRock and O I

0.0

Correlation Coefficient

WestRock  O I

Pay attention - limited upside

The 3 months correlation between WestRock and O I is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WestRock Co 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 WestRock 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 WestRock Co 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 WestRock i.e., WestRock and O I go up and down completely randomly.

Pair Corralation between WestRock and O I

If you would invest  1,030  in O I Glass on December 27, 2024 and sell it today you would earn a total of  172.00  from holding O I Glass or generate 16.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

WestRock Co  vs.  O I Glass

WestRock

Risk-Adjusted Performance

Very Weak

Over the last 90 days WestRock Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, WestRock is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

O I Glass

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in O I Glass are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile forward indicators, O I demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WestRock and O I

The main advantage of trading using opposite WestRock and O I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WestRock 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 WestRock Co 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.