Correlation Between Myers Industries and Silgan Holdings

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

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

Diversification Opportunities for Myers Industries and Silgan Holdings

0.17

Correlation Coefficient

Myers Industries  Silgan Holdings

Average diversification

The 3 months correlation between Myers and Silgan is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Myers Industries and Silgan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgan Holdings and Myers 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 Myers Industries are associated (or correlated) with Silgan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silgan Holdings has no effect on the direction of Myers Industries i.e., Myers Industries and Silgan Holdings go up and down completely randomly.

Pair Corralation between Myers Industries and Silgan Holdings

Considering the 90-day investment horizon Myers Industries is expected to generate 0.93 times more return on investment than Silgan Holdings. However, Myers Industries is 1.07 times less risky than Silgan Holdings. It trades about 0.21 of its potential returns per unit of risk. Silgan Holdings is currently generating about -0.11 per unit of risk. If you would invest  1,150  in Myers Industries on May 5, 2025 and sell it today you would earn a total of  336.00  from holding Myers Industries or generate 29.22% return on investment over 90 days.

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

Myers Industries  vs.  Silgan Holdings

Myers Industries

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Myers Industries are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Myers Industries exhibited solid returns over the last few months and may actually be approaching a breakup point.

Silgan Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silgan Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Myers Industries and Silgan Holdings

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

The idea behind Myers Industries and Silgan Holdings 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.