Correlation Between CCL Industries and Black Diamond

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

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

Diversification Opportunities for CCL Industries and Black Diamond

0.48

Correlation Coefficient

CCL Industries  Black Diamond

Very weak diversification

The 3 months correlation between CCL and Black is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries and Black Diamond Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Diamond Group and CCL Industries 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 CCL Industries are associated (or correlated) with Black Diamond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Diamond Group has no effect on the direction of CCL Industries i.e., CCL Industries and Black Diamond go up and down completely randomly.

Pair Corralation between CCL Industries and Black Diamond

Assuming the 90 days trading horizon CCL Industries is expected to generate 3.59 times less return on investment than Black Diamond. But when comparing it to its historical volatility, CCL Industries is 1.36 times less risky than Black Diamond. It trades about 0.11 of its potential returns per unit of risk. Black Diamond Group is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  867.00  in Black Diamond Group on May 5, 2025 and sell it today you would earn a total of  301.00  from holding Black Diamond Group or generate 34.72% return on investment over 90 days.

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

CCL Industries  vs.  Black Diamond Group

CCL Industries

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CCL Industries are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, CCL Industries may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Black Diamond Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Black Diamond Group are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Black Diamond displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CCL Industries and Black Diamond

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

The idea behind CCL Industries and Black Diamond Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.