Correlation Between Smurfit Kappa and Amcor Plc
Can any of the company-specific risk be diversified away by investing in both Smurfit Kappa and Amcor Plc 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 Smurfit Kappa and Amcor Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smurfit Kappa Group and Amcor Plc, you can compare the effects of market volatilities on Smurfit Kappa and Amcor Plc 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 Smurfit Kappa with a short position of Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smurfit Kappa and Amcor Plc.
Diversification Opportunities for Smurfit Kappa and Amcor Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Smurfit and Amcor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Smurfit Kappa Group and Amcor Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor Plc and Smurfit Kappa 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 Smurfit Kappa Group are associated (or correlated) with Amcor Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor Plc has no effect on the direction of Smurfit Kappa i.e., Smurfit Kappa and Amcor Plc go up and down completely randomly.
Pair Corralation between Smurfit Kappa and Amcor Plc
If you would invest 4,268 in Smurfit Kappa Group on January 20, 2024 and sell it today you would earn a total of 11.00 from holding Smurfit Kappa Group or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Smurfit Kappa Group vs. Amcor Plc
Performance |
| Timeline |
| Smurfit Kappa Group |
| Amcor Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Smurfit Kappa and Amcor Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smurfit Kappa and Amcor Plc
The main advantage of trading using opposite Smurfit Kappa and Amcor Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smurfit Kappa position performs unexpectedly, Amcor Plc 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 Amcor Plc will offset losses from the drop in Amcor Plc's long position.| Smurfit Kappa vs. Ball Corporation | Smurfit Kappa vs. Sealed Air | Smurfit Kappa vs. International Paper | Smurfit Kappa vs. Avery Dennison Corp |
| Amcor Plc vs. Direct Line Insurance | Amcor Plc vs. Pekin Life Insurance | Amcor Plc vs. Dave Busters Entertainment | Amcor Plc vs. Cedar Fair LP |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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