Correlation Between Graphic Packaging and Victory Bancorp
Can any of the company-specific risk be diversified away by investing in both Graphic Packaging and Victory Bancorp 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 Victory Bancorp 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 The Victory Bancorp, you can compare the effects of market volatilities on Graphic Packaging and Victory Bancorp 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 Victory Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphic Packaging and Victory Bancorp.
Diversification Opportunities for Graphic Packaging and Victory Bancorp
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graphic and Victory is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Graphic Packaging Holding and The Victory Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Bancorp 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 Victory Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Bancorp has no effect on the direction of Graphic Packaging i.e., Graphic Packaging and Victory Bancorp go up and down completely randomly.
Pair Corralation between Graphic Packaging and Victory Bancorp
Considering the 90-day investment horizon Graphic Packaging Holding is expected to generate 1.3 times more return on investment than Victory Bancorp. However, Graphic Packaging is 1.3 times more volatile than The Victory Bancorp. It trades about 0.39 of its potential returns per unit of risk. The Victory Bancorp is currently generating about -0.27 per unit of risk. If you would invest 2,597 in Graphic Packaging Holding on December 29, 2023 and sell it today you would earn a total of 321.00 from holding Graphic Packaging Holding or generate 12.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Graphic Packaging Holding vs. The Victory Bancorp
Performance |
Timeline |
Graphic Packaging Holding |
Victory Bancorp |
Graphic Packaging and Victory Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Graphic Packaging and Victory Bancorp
The main advantage of trading using opposite Graphic Packaging and Victory Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphic Packaging position performs unexpectedly, Victory Bancorp 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 Victory Bancorp will offset losses from the drop in Victory Bancorp's long position.Graphic Packaging vs. O I Glass | Graphic Packaging vs. Millennium Group International | Graphic Packaging vs. Eightco Holdings | Graphic Packaging vs. Crown Holdings |
Victory Bancorp vs. US Bancorp | Victory Bancorp vs. HDFC Bank Limited | Victory Bancorp vs. Banco Do Brasil | Victory Bancorp vs. Banco Bradesco SA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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