Correlation Between Sealed Air and Roebuck Food
Can any of the company-specific risk be diversified away by investing in both Sealed Air and Roebuck Food 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 Roebuck Food 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 Roebuck Food Group, you can compare the effects of market volatilities on Sealed Air and Roebuck Food 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 Roebuck Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and Roebuck Food.
Diversification Opportunities for Sealed Air and Roebuck Food
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sealed and Roebuck is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air Corp and Roebuck Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roebuck Food Group 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 Roebuck Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roebuck Food Group has no effect on the direction of Sealed Air i.e., Sealed Air and Roebuck Food go up and down completely randomly.
Pair Corralation between Sealed Air and Roebuck Food
Assuming the 90 days trading horizon Sealed Air is expected to generate 5.66 times less return on investment than Roebuck Food. In addition to that, Sealed Air is 1.35 times more volatile than Roebuck Food Group. It trades about 0.02 of its total potential returns per unit of risk. Roebuck Food Group is currently generating about 0.13 per unit of volatility. If you would invest 1,275 in Roebuck Food Group on September 3, 2024 and sell it today you would earn a total of 405.00 from holding Roebuck Food Group or generate 31.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.57% |
| Values | Daily Returns |
Sealed Air Corp vs. Roebuck Food Group
Performance |
| Timeline |
| Sealed Air Corp |
| Roebuck Food Group |
Sealed Air and Roebuck Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and Roebuck Food
The main advantage of trading using opposite Sealed Air and Roebuck Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, Roebuck Food 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 Roebuck Food will offset losses from the drop in Roebuck Food's long position.| Sealed Air vs. Cembra Money Bank | Sealed Air vs. Amedeo Air Four | Sealed Air vs. Cairn Homes PLC | Sealed Air vs. Finnair Oyj |
| Roebuck Food vs. Charter Communications Cl | Roebuck Food vs. Norwegian Air Shuttle | Roebuck Food vs. Hochschild Mining plc | Roebuck Food vs. Sealed Air 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |