Correlation Between Sealed Air and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Sealed Air and McEwen Mining 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 McEwen Mining 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 McEwen Mining, you can compare the effects of market volatilities on Sealed Air and McEwen Mining 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 McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and McEwen Mining.
Diversification Opportunities for Sealed Air and McEwen Mining
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sealed and McEwen is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air Corp and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining 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 McEwen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McEwen Mining has no effect on the direction of Sealed Air i.e., Sealed Air and McEwen Mining go up and down completely randomly.
Pair Corralation between Sealed Air and McEwen Mining
Assuming the 90 days trading horizon Sealed Air Corp is expected to under-perform the McEwen Mining. But the stock apears to be less risky and, when comparing its historical volatility, Sealed Air Corp is 1.63 times less risky than McEwen Mining. The stock trades about -0.01 of its potential returns per unit of risk. The McEwen Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 906.00 in McEwen Mining on September 12, 2024 and sell it today you would lose (41.00) from holding McEwen Mining or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.69% |
| Values | Daily Returns |
Sealed Air Corp vs. McEwen Mining
Performance |
| Timeline |
| Sealed Air Corp |
| McEwen Mining |
Sealed Air and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and McEwen Mining
The main advantage of trading using opposite Sealed Air and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, McEwen Mining 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 McEwen Mining will offset losses from the drop in McEwen Mining's long position.| Sealed Air vs. Hong Kong Land | Sealed Air vs. Neometals | Sealed Air vs. Coor Service Management | Sealed Air vs. Fidelity Sustainable USD |
| McEwen Mining vs. Impax Environmental Markets | McEwen Mining vs. Amedeo Air Four | McEwen Mining vs. Sealed Air Corp | McEwen Mining vs. Flow Traders NV |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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