Correlation Between Crown Holdings and Winpak

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

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

Diversification Opportunities for Crown Holdings and Winpak

0.54

Correlation Coefficient

Crown Holdings  Winpak

Very weak diversification

The 3 months correlation between Crown and Winpak is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Crown Holdings and Winpak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winpak 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 Winpak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winpak has no effect on the direction of Crown Holdings i.e., Crown Holdings and Winpak go up and down completely randomly.

Pair Corralation between Crown Holdings and Winpak

Considering the 90-day investment horizon Crown Holdings is expected to generate 0.63 times more return on investment than Winpak. However, Crown Holdings is 1.58 times less risky than Winpak. It trades about 0.05 of its potential returns per unit of risk. Winpak is currently generating about -0.03 per unit of risk. If you would invest  9,821  in Crown Holdings on May 26, 2025 and sell it today you would earn a total of  265.00  from holding Crown Holdings or generate 2.7% return on investment over 90 days.

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

Crown Holdings  vs.  Winpak

Crown Holdings

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Crown Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Crown Holdings is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Winpak

Risk-Adjusted Performance

Weakest

Over the last 90 days Winpak has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Winpak is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Crown Holdings and Winpak

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

The idea behind Crown Holdings and Winpak 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.