Correlation Between Panasonic Corp and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Panasonic Corp 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 Panasonic Corp and Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panasonic Corp and Sealed Air Corp, you can compare the effects of market volatilities on Panasonic Corp 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 Panasonic Corp with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panasonic Corp and Sealed Air.
Diversification Opportunities for Panasonic Corp and Sealed Air
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panasonic and Sealed is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Panasonic Corp 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 Panasonic Corp 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 Panasonic Corp 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 Panasonic Corp i.e., Panasonic Corp and Sealed Air go up and down completely randomly.
Pair Corralation between Panasonic Corp and Sealed Air
Assuming the 90 days trading horizon Panasonic Corp is expected to generate 1.23 times more return on investment than Sealed Air. However, Panasonic Corp is 1.23 times more volatile than Sealed Air Corp. It trades about 0.07 of its potential returns per unit of risk. Sealed Air Corp is currently generating about 0.01 per unit of risk. If you would invest 137,827 in Panasonic Corp on November 9, 2024 and sell it today you would earn a total of 39,773 from holding Panasonic Corp or generate 28.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 73.52% |
| Values | Daily Returns |
Panasonic Corp vs. Sealed Air Corp
Performance |
| Timeline |
| Panasonic Corp |
| Sealed Air Corp |
Panasonic Corp and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panasonic Corp and Sealed Air
The main advantage of trading using opposite Panasonic Corp and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panasonic Corp 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.| Panasonic Corp vs. Porvair plc | Panasonic Corp vs. Universal Health Services | Panasonic Corp vs. Planet Fitness Cl | Panasonic Corp vs. Norwegian Air Shuttle |
| Sealed Air vs. Batm Advanced Communications | Sealed Air vs. United Internet AG | Sealed Air vs. Alfa Financial Software | Sealed Air vs. Capital Drilling |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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