Correlation Between Ashtead Technology and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Ashtead Technology 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 Ashtead Technology and Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashtead Technology Holdings and Sealed Air Corp, you can compare the effects of market volatilities on Ashtead Technology 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 Ashtead Technology with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashtead Technology and Sealed Air.
Diversification Opportunities for Ashtead Technology and Sealed Air
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ashtead and Sealed is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ashtead Technology Holdings 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 Ashtead Technology 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 Ashtead Technology Holdings 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 Ashtead Technology i.e., Ashtead Technology and Sealed Air go up and down completely randomly.
Pair Corralation between Ashtead Technology and Sealed Air
Assuming the 90 days trading horizon Ashtead Technology Holdings is expected to under-perform the Sealed Air. In addition to that, Ashtead Technology is 1.46 times more volatile than Sealed Air Corp. It trades about 0.0 of its total potential returns per unit of risk. Sealed Air Corp is currently generating about 0.01 per unit of volatility. If you would invest 3,526 in Sealed Air Corp on November 9, 2024 and sell it today you would lose (30.00) from holding Sealed Air Corp or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.36% |
| Values | Daily Returns |
Ashtead Technology Holdings vs. Sealed Air Corp
Performance |
| Timeline |
| Ashtead Technology |
| Sealed Air Corp |
Ashtead Technology and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashtead Technology and Sealed Air
The main advantage of trading using opposite Ashtead Technology and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashtead Technology 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.| Ashtead Technology vs. Charter Communications Cl | Ashtead Technology vs. Seche Environnement SA | Ashtead Technology vs. Planet Fitness Cl | Ashtead Technology vs. Batm Advanced Communications |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |