Correlation Between Sealed Air and NB Private
Can any of the company-specific risk be diversified away by investing in both Sealed Air and NB Private 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 NB Private 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 NB Private Equity, you can compare the effects of market volatilities on Sealed Air and NB Private 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 NB Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and NB Private.
Diversification Opportunities for Sealed Air and NB Private
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sealed and NBPE is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air Corp and NB Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NB Private Equity 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 NB Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NB Private Equity has no effect on the direction of Sealed Air i.e., Sealed Air and NB Private go up and down completely randomly.
Pair Corralation between Sealed Air and NB Private
Assuming the 90 days trading horizon Sealed Air Corp is expected to generate 3.48 times more return on investment than NB Private. However, Sealed Air is 3.48 times more volatile than NB Private Equity. It trades about 0.05 of its potential returns per unit of risk. NB Private Equity is currently generating about 0.15 per unit of risk. If you would invest 3,393 in Sealed Air Corp on December 4, 2024 and sell it today you would earn a total of 55.00 from holding Sealed Air Corp or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Sealed Air Corp vs. NB Private Equity
Performance |
| Timeline |
| Sealed Air Corp |
| NB Private Equity |
Sealed Air and NB Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and NB Private
The main advantage of trading using opposite Sealed Air and NB Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, NB Private 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 NB Private will offset losses from the drop in NB Private's long position.| Sealed Air vs. Future Metals NL | Sealed Air vs. Gaztransport et Technigaz | Sealed Air vs. Roadside Real Estate | Sealed Air vs. EVS Broadcast Equipment |
| NB Private vs. EJF Investments | NB Private vs. Smithson Investment Trust | NB Private vs. Batm Advanced Communications | NB Private vs. Zoom Video Communications |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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