Correlation Between SOGECLAIR and SEALED AIR
Can any of the company-specific risk be diversified away by investing in both SOGECLAIR 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 SOGECLAIR and SEALED AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOGECLAIR SA INH and SEALED AIR , you can compare the effects of market volatilities on SOGECLAIR 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 SOGECLAIR with a short position of SEALED AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOGECLAIR and SEALED AIR.
Diversification Opportunities for SOGECLAIR and SEALED AIR
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between SOGECLAIR and SEALED is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding SOGECLAIR SA INH and SEALED AIR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALED AIR and SOGECLAIR 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 SOGECLAIR SA INH 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 has no effect on the direction of SOGECLAIR i.e., SOGECLAIR and SEALED AIR go up and down completely randomly.
Pair Corralation between SOGECLAIR and SEALED AIR
Assuming the 90 days horizon SOGECLAIR SA INH is expected to under-perform the SEALED AIR. In addition to that, SOGECLAIR is 1.63 times more volatile than SEALED AIR . It trades about -0.05 of its total potential returns per unit of risk. SEALED AIR is currently generating about 0.0 per unit of volatility. If you would invest 3,417 in SEALED AIR on October 25, 2024 and sell it today you would lose (57.00) from holding SEALED AIR or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOGECLAIR SA INH vs. SEALED AIR
Performance |
| Timeline |
| SOGECLAIR SA INH |
| SEALED AIR |
SOGECLAIR and SEALED AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOGECLAIR and SEALED AIR
The main advantage of trading using opposite SOGECLAIR and SEALED AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOGECLAIR 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.| SOGECLAIR vs. NTG Nordic Transport | SOGECLAIR vs. SOEDER SPORTFISKE AB | SOGECLAIR vs. SEI INVESTMENTS | SOGECLAIR vs. PennyMac Mortgage Investment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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