Correlation Between Silgan Holdings and Sonoco Products
Can any of the company-specific risk be diversified away by investing in both Silgan Holdings and Sonoco Products 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 Sonoco Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silgan Holdings and Sonoco Products, you can compare the effects of market volatilities on Silgan Holdings and Sonoco Products 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 Sonoco Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silgan Holdings and Sonoco Products.
Diversification Opportunities for Silgan Holdings and Sonoco Products
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Silgan and Sonoco is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Silgan Holdings and Sonoco Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonoco Products 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 Sonoco Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonoco Products has no effect on the direction of Silgan Holdings i.e., Silgan Holdings and Sonoco Products go up and down completely randomly.
Pair Corralation between Silgan Holdings and Sonoco Products
Given the investment horizon of 90 days Silgan Holdings is expected to under-perform the Sonoco Products. In addition to that, Silgan Holdings is 1.41 times more volatile than Sonoco Products. It trades about -0.09 of its total potential returns per unit of risk. Sonoco Products is currently generating about -0.1 per unit of volatility. If you would invest 4,546 in Sonoco Products on September 10, 2025 and sell it today you would lose (455.00) from holding Sonoco Products or give up 10.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silgan Holdings vs. Sonoco Products
Performance |
| Timeline |
| Silgan Holdings |
| Sonoco Products |
Silgan Holdings and Sonoco Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silgan Holdings and Sonoco Products
The main advantage of trading using opposite Silgan Holdings and Sonoco Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silgan Holdings position performs unexpectedly, Sonoco Products 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 Sonoco Products will offset losses from the drop in Sonoco Products' long position.| Silgan Holdings vs. Sonoco Products | Silgan Holdings vs. Graphic Packaging Holding | Silgan Holdings vs. Sealed Air | Silgan Holdings vs. Travel Leisure Co |
| Sonoco Products vs. Silgan Holdings | Sonoco Products vs. Graphic Packaging Holding | Sonoco Products vs. Greif Bros | Sonoco Products vs. Sealed Air |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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