Correlation Between Sealed Air and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both Sealed Air and Hartford Financial 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 Sealed Air and Hartford Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sealed Air Corp and Hartford Financial Services, you can compare the effects of market volatilities on Sealed Air and Hartford Financial 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 Sealed Air with a short position of Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and Hartford Financial.
Diversification Opportunities for Sealed Air and Hartford Financial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sealed and Hartford is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air Corp and Hartford Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Financial and Sealed Air 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 Sealed Air Corp are associated (or correlated) with Hartford Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Financial has no effect on the direction of Sealed Air i.e., Sealed Air and Hartford Financial go up and down completely randomly.
Pair Corralation between Sealed Air and Hartford Financial
Assuming the 90 days trading horizon Sealed Air Corp is expected to under-perform the Hartford Financial. In addition to that, Sealed Air is 1.07 times more volatile than Hartford Financial Services. It trades about -0.02 of its total potential returns per unit of risk. Hartford Financial Services is currently generating about 0.0 per unit of volatility. If you would invest 11,195 in Hartford Financial Services on October 25, 2024 and sell it today you would lose (71.00) from holding Hartford Financial Services or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.61% |
| Values | Daily Returns |
Sealed Air Corp vs. Hartford Financial Services
Performance |
| Timeline |
| Sealed Air Corp |
| Hartford Financial |
Sealed Air and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and Hartford Financial
The main advantage of trading using opposite Sealed Air and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, Hartford Financial 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 Hartford Financial will offset losses from the drop in Hartford Financial's long position.| Sealed Air vs. First Majestic Silver | Sealed Air vs. Invesco Physical Silver | Sealed Air vs. Blackrock World Mining | Sealed Air vs. Coeur Mining |
| Hartford Financial vs. HCA Healthcare | Hartford Financial vs. MyHealthChecked Plc | Hartford Financial vs. Primary Health Properties | Hartford Financial vs. Golden Metal Resources |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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