Correlation Between ACG Metals and Sealed Air
Can any of the company-specific risk be diversified away by investing in both ACG Metals 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 ACG Metals and Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACG Metals Limited and Sealed Air, you can compare the effects of market volatilities on ACG Metals 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 ACG Metals with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACG Metals and Sealed Air.
Diversification Opportunities for ACG Metals and Sealed Air
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACG and Sealed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACG Metals Limited and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air and ACG Metals 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 ACG Metals Limited 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 ACG Metals i.e., ACG Metals and Sealed Air go up and down completely randomly.
Pair Corralation between ACG Metals and Sealed Air
If you would invest 3,618 in Sealed Air on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Sealed Air or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACG Metals Limited vs. Sealed Air
Performance |
| Timeline |
| ACG Metals Limited |
| Sealed Air |
ACG Metals and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACG Metals and Sealed Air
The main advantage of trading using opposite ACG Metals and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACG Metals 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.| ACG Metals vs. Legacy Education | ACG Metals vs. Apple Inc | ACG Metals vs. NVIDIA | ACG Metals vs. Microsoft |
| Sealed Air vs. Packaging Corp of | Sealed Air vs. O I Glass | Sealed Air vs. Silgan Holdings | Sealed Air vs. International Paper |
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.
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