Correlation Between Silgan Holdings and Brady
Can any of the company-specific risk be diversified away by investing in both Silgan Holdings and Brady 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 Silgan Holdings and Brady into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silgan Holdings and Brady, you can compare the effects of market volatilities on Silgan Holdings and Brady 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 Silgan Holdings with a short position of Brady. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silgan Holdings and Brady.
Diversification Opportunities for Silgan Holdings and Brady
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Silgan and Brady is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Silgan Holdings and Brady in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brady and Silgan Holdings 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 Silgan Holdings are associated (or correlated) with Brady. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brady has no effect on the direction of Silgan Holdings i.e., Silgan Holdings and Brady go up and down completely randomly.
Pair Corralation between Silgan Holdings and Brady
Given the investment horizon of 90 days Silgan Holdings is expected to under-perform the Brady. In addition to that, Silgan Holdings is 1.94 times more volatile than Brady. It trades about -0.09 of its total potential returns per unit of risk. Brady is currently generating about 0.15 per unit of volatility. If you would invest 7,017 in Brady on June 3, 2025 and sell it today you would earn a total of 791.00 from holding Brady or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silgan Holdings vs. Brady
Performance |
| Timeline |
| Silgan Holdings |
| Brady |
Silgan Holdings and Brady Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silgan Holdings and Brady
The main advantage of trading using opposite Silgan Holdings and Brady positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silgan Holdings position performs unexpectedly, Brady 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 Brady will offset losses from the drop in Brady's long position.| Silgan Holdings vs. Greif Bros | Silgan Holdings vs. Sonoco Products | Silgan Holdings vs. Reynolds Consumer Products | Silgan Holdings vs. Myers Industries |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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