Correlation Between Greif Bros and Tupperware Brands

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

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

Diversification Opportunities for Greif Bros and Tupperware Brands

-0.42

Correlation Coefficient

Greif Bros  Tupperware Brands

Very good diversification

The 3 months correlation between Greif and Tupperware is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Greif Bros and Tupperware Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tupperware Brands and Greif Bros 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 Greif Bros are associated (or correlated) with Tupperware Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tupperware Brands has no effect on the direction of Greif Bros i.e., Greif Bros and Tupperware Brands go up and down completely randomly.

Pair Corralation between Greif Bros and Tupperware Brands

Considering the 90-day investment horizon Greif Bros is expected to generate 0.04 times more return on investment than Tupperware Brands. However, Greif Bros is 27.43 times less risky than Tupperware Brands. It trades about 0.08 of its potential returns per unit of risk. Tupperware Brands is currently generating about -0.5 per unit of risk. If you would invest  6,161  in Greif Bros on September 15, 2024 and sell it today you would earn a total of  500.00  from holding Greif Bros or generate 8.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	6.25%
Values	Daily Returns

Greif Bros  vs.  Tupperware Brands

Greif Bros

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Greif Bros are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Greif Bros may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Tupperware Brands

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tupperware Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Greif Bros and Tupperware Brands

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

The idea behind Greif Bros and Tupperware Brands 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.