Correlation Between Sealed Air and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Sealed Air and Evolution Gaming 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 Evolution Gaming 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 Evolution Gaming Group, you can compare the effects of market volatilities on Sealed Air and Evolution Gaming 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 Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and Evolution Gaming.
Diversification Opportunities for Sealed Air and Evolution Gaming
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sealed and Evolution is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air Corp and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming 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 Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Sealed Air i.e., Sealed Air and Evolution Gaming go up and down completely randomly.
Pair Corralation between Sealed Air and Evolution Gaming
Assuming the 90 days trading horizon Sealed Air Corp is expected to generate 1.25 times more return on investment than Evolution Gaming. However, Sealed Air is 1.25 times more volatile than Evolution Gaming Group. It trades about -0.02 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.04 per unit of risk. If you would invest 4,666 in Sealed Air Corp on October 16, 2024 and sell it today you would lose (1,331) from holding Sealed Air Corp or give up 28.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.03% |
| Values | Daily Returns |
Sealed Air Corp vs. Evolution Gaming Group
Performance |
| Timeline |
| Sealed Air Corp |
| Evolution Gaming |
Sealed Air and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and Evolution Gaming
The main advantage of trading using opposite Sealed Air and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Sealed Air vs. Spirent Communications plc | Sealed Air vs. Gamma Communications PLC | Sealed Air vs. Universal Display Corp | Sealed Air vs. Cairo Communication SpA |
| Evolution Gaming vs. Sabre Insurance Group | Evolution Gaming vs. Norwegian Air Shuttle | Evolution Gaming vs. Sealed Air Corp | Evolution Gaming vs. Lundin Mining Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets |