Correlation Between Graphic Packaging and Tupperware Brands

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

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

Diversification Opportunities for Graphic Packaging and Tupperware Brands

-0.01

Correlation Coefficient

Graphic Packaging  Tupperware Brands

Good diversification

The 3 months correlation between Graphic and Tupperware is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Graphic Packaging Holding and Tupperware Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tupperware Brands and Graphic Packaging 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 Graphic Packaging Holding 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 Graphic Packaging i.e., Graphic Packaging and Tupperware Brands go up and down completely randomly.

Pair Corralation between Graphic Packaging and Tupperware Brands

If you would invest  2,863  in Graphic Packaging Holding on September 14, 2024 and sell it today you would earn a total of  90.00  from holding Graphic Packaging Holding or generate 3.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Graphic Packaging Holding  vs.  Tupperware Brands

Graphic Packaging Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Graphic Packaging Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Graphic Packaging is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

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 Graphic Packaging and Tupperware Brands

The main advantage of trading using opposite Graphic Packaging and Tupperware Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphic Packaging 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 Graphic Packaging Holding 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.

Check out your portfolio center.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.