Correlation Between Foreign Trade and Amcor Plc

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

By analyzing existing cross correlation between Foreign Trade Bank and Amcor plc, you can compare the effects of market volatilities on Foreign Trade 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 Foreign Trade with a short position of Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foreign Trade and Amcor Plc.

Diversification Opportunities for Foreign Trade and Amcor Plc

-0.68

Correlation Coefficient

Foreign Trade  Amcor Plc

Excellent diversification

The 3 months correlation between Foreign and Amcor is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Foreign Trade Bank and Amcor plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor plc and Foreign Trade 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 Foreign Trade Bank 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 Foreign Trade i.e., Foreign Trade and Amcor Plc go up and down completely randomly.

Pair Corralation between Foreign Trade and Amcor Plc

Considering the 90-day investment horizon Foreign Trade Bank is expected to generate 0.63 times more return on investment than Amcor Plc. However, Foreign Trade Bank is 1.58 times less risky than Amcor Plc. It trades about 0.1 of its potential returns per unit of risk. Amcor plc is currently generating about -0.08 per unit of risk. If you would invest  4,160  in Foreign Trade Bank on July 24, 2025 and sell it today you would earn a total of  364.00  from holding Foreign Trade Bank or generate 8.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Foreign Trade Bank  vs.  Amcor plc

Foreign Trade Bank

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Foreign Trade Bank are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating essential indicators, Foreign Trade may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Amcor plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Amcor plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Foreign Trade and Amcor Plc

The main advantage of trading using opposite Foreign Trade and Amcor Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foreign Trade 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.

The idea behind Foreign Trade Bank and Amcor plc 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.