Correlation Between Cembra Money and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Cembra Money and Sealed Air 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 Cembra Money and Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cembra Money Bank and Sealed Air Corp, you can compare the effects of market volatilities on Cembra Money and Sealed Air 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 Cembra Money with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cembra Money and Sealed Air.
Diversification Opportunities for Cembra Money and Sealed Air
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cembra and Sealed is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank and Sealed Air Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air Corp and Cembra Money 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 Cembra Money Bank are associated (or correlated) with Sealed Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sealed Air Corp has no effect on the direction of Cembra Money i.e., Cembra Money and Sealed Air go up and down completely randomly.
Pair Corralation between Cembra Money and Sealed Air
Assuming the 90 days trading horizon Cembra Money Bank is expected to generate 0.71 times more return on investment than Sealed Air. However, Cembra Money Bank is 1.42 times less risky than Sealed Air. It trades about 0.23 of its potential returns per unit of risk. Sealed Air Corp is currently generating about -0.05 per unit of risk. If you would invest 7,815 in Cembra Money Bank on September 3, 2024 and sell it today you would earn a total of 295.00 from holding Cembra Money Bank or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Cembra Money Bank vs. Sealed Air Corp
Performance |
| Timeline |
| Cembra Money Bank |
| Sealed Air Corp |
Cembra Money and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cembra Money and Sealed Air
The main advantage of trading using opposite Cembra Money and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money position performs unexpectedly, Sealed Air 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 Sealed Air will offset losses from the drop in Sealed Air's long position.| Cembra Money vs. Catalyst Media Group | Cembra Money vs. CATLIN GROUP | Cembra Money vs. Magnora ASA | Cembra Money vs. RTW Venture Fund |
| Sealed Air vs. Cembra Money Bank | Sealed Air vs. Amedeo Air Four | Sealed Air vs. Cairn Homes PLC | Sealed Air vs. Finnair Oyj |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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