Correlation Between Tupperware Brands and Imaflex

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

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

Diversification Opportunities for Tupperware Brands and Imaflex

0.43

Correlation Coefficient

Tupperware Brands  Imaflex

Very weak diversification

The 3 months correlation between Tupperware and Imaflex is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tupperware Brands and Imaflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imaflex 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 Imaflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imaflex has no effect on the direction of Tupperware Brands i.e., Tupperware Brands and Imaflex go up and down completely randomly.

Pair Corralation between Tupperware Brands and Imaflex

Considering the 90-day investment horizon Tupperware Brands is expected to under-perform the Imaflex. In addition to that, Tupperware Brands is 3.66 times more volatile than Imaflex. It trades about -0.02 of its total potential returns per unit of risk. Imaflex is currently generating about 0.01 per unit of volatility. If you would invest  105.00  in Imaflex on September 15, 2024 and sell it today you would lose (5.00) from holding Imaflex or give up 4.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	87.7%
Values	Daily Returns

Tupperware Brands  vs.  Imaflex

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.

Imaflex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Imaflex has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Imaflex is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Tupperware Brands and Imaflex

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

The idea behind Tupperware Brands and Imaflex 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.