Correlation Between Silgan Holdings and TriMas

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

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

Diversification Opportunities for Silgan Holdings and TriMas

0.3

Correlation Coefficient

Silgan Holdings  TriMas

Weak diversification

The 3 months correlation between Silgan and TriMas is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Silgan Holdings and TriMas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriMas and Silgan 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 Silgan Holdings are associated (or correlated) with TriMas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriMas has no effect on the direction of Silgan Holdings i.e., Silgan Holdings and TriMas go up and down completely randomly.

Pair Corralation between Silgan Holdings and TriMas

Given the investment horizon of 90 days Silgan Holdings is expected to under-perform the TriMas. In addition to that, Silgan Holdings is 1.11 times more volatile than TriMas. It trades about -0.1 of its total potential returns per unit of risk. TriMas is currently generating about 0.31 per unit of volatility. If you would invest  2,460  in TriMas on May 3, 2025 and sell it today you would earn a total of  1,113  from holding TriMas or generate 45.24% return on investment over 90 days.

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

Silgan Holdings  vs.  TriMas

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.

TriMas

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TriMas are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, TriMas unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silgan Holdings and TriMas

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

The idea behind Silgan Holdings and TriMas 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.