Correlation Between Sealed Air and Seraphim Space
Can any of the company-specific risk be diversified away by investing in both Sealed Air and Seraphim Space 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 Seraphim Space 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 Seraphim Space Investment, you can compare the effects of market volatilities on Sealed Air and Seraphim Space 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 Seraphim Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and Seraphim Space.
Diversification Opportunities for Sealed Air and Seraphim Space
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sealed and Seraphim is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air Corp and Seraphim Space Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seraphim Space Investment 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 Seraphim Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seraphim Space Investment has no effect on the direction of Sealed Air i.e., Sealed Air and Seraphim Space go up and down completely randomly.
Pair Corralation between Sealed Air and Seraphim Space
Assuming the 90 days trading horizon Sealed Air Corp is expected to under-perform the Seraphim Space. But the stock apears to be less risky and, when comparing its historical volatility, Sealed Air Corp is 2.0 times less risky than Seraphim Space. The stock trades about -0.03 of its potential returns per unit of risk. The Seraphim Space Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,810 in Seraphim Space Investment on October 11, 2024 and sell it today you would earn a total of 590.00 from holding Seraphim Space Investment or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.73% |
| Values | Daily Returns |
Sealed Air Corp vs. Seraphim Space Investment
Performance |
| Timeline |
| Sealed Air Corp |
| Seraphim Space Investment |
Sealed Air and Seraphim Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and Seraphim Space
The main advantage of trading using opposite Sealed Air and Seraphim Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, Seraphim Space 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 Seraphim Space will offset losses from the drop in Seraphim Space's long position.| Sealed Air vs. LPKF Laser Electronics | Sealed Air vs. STMicroelectronics NV | Sealed Air vs. Universal Music Group | Sealed Air vs. Gear4music Plc |
| Seraphim Space vs. SupplyMe Capital PLC | Seraphim Space vs. SM Energy Co | Seraphim Space vs. FuelCell Energy | Seraphim Space vs. Grand Vision Media |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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