Correlation Between Tupperware Brands and Greif Bros

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

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

Diversification Opportunities for Tupperware Brands and Greif Bros

-0.42

Correlation Coefficient

Tupperware Brands  Greif Bros

Very good diversification

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

Pair Corralation between Tupperware Brands and Greif Bros

Considering the 90-day investment horizon Tupperware Brands is expected to under-perform the Greif Bros. In addition to that, Tupperware Brands is 6.82 times more volatile than Greif Bros. It trades about -0.02 of its total potential returns per unit of risk. Greif Bros is currently generating about 0.01 per unit of volatility. If you would invest  6,442  in Greif Bros on September 15, 2024 and sell it today you would earn a total of  219.00  from holding Greif Bros or generate 3.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	87.88%
Values	Daily Returns

Tupperware Brands  vs.  Greif Bros

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.

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.

Pair Trading with Tupperware Brands and Greif Bros

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

The idea behind Tupperware Brands and Greif Bros 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.