Correlation Between Crown Holdings and Linamar

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

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

Diversification Opportunities for Crown Holdings and Linamar

-0.79

Correlation Coefficient

Crown Holdings  Linamar

Pay attention - limited upside

The 3 months correlation between Crown and Linamar is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Crown Holdings and Linamar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linamar and Crown 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 Crown Holdings are associated (or correlated) with Linamar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linamar has no effect on the direction of Crown Holdings i.e., Crown Holdings and Linamar go up and down completely randomly.

Pair Corralation between Crown Holdings and Linamar

Considering the 90-day investment horizon Crown Holdings is expected to under-perform the Linamar. In addition to that, Crown Holdings is 1.02 times more volatile than Linamar. It trades about -0.13 of its total potential returns per unit of risk. Linamar is currently generating about 0.16 per unit of volatility. If you would invest  4,759  in Linamar on July 7, 2025 and sell it today you would earn a total of  621.00  from holding Linamar or generate 13.05% return on investment over 90 days.

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

Crown Holdings  vs.  Linamar

Crown Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Crown Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Linamar

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Linamar are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Linamar may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Crown Holdings and Linamar

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

The idea behind Crown Holdings and Linamar 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.