Correlation Between Galaxy Entertainment and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment 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 Galaxy Entertainment and Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Entertainment Group and Sealed Air, you can compare the effects of market volatilities on Galaxy Entertainment 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 Galaxy Entertainment with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and Sealed Air.
Diversification Opportunities for Galaxy Entertainment and Sealed Air
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Galaxy and Sealed is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air and Galaxy Entertainment 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 Galaxy Entertainment Group 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 Galaxy Entertainment i.e., Galaxy Entertainment and Sealed Air go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and Sealed Air
Assuming the 90 days horizon Galaxy Entertainment Group is expected to generate 2.86 times more return on investment than Sealed Air. However, Galaxy Entertainment is 2.86 times more volatile than Sealed Air. It trades about 0.22 of its potential returns per unit of risk. Sealed Air is currently generating about 0.08 per unit of risk. If you would invest 410.00 in Galaxy Entertainment Group on September 13, 2024 and sell it today you would earn a total of 71.00 from holding Galaxy Entertainment Group or generate 17.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Galaxy Entertainment Group vs. Sealed Air
Performance |
| Timeline |
| Galaxy Entertainment |
| Sealed Air |
Galaxy Entertainment and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and Sealed Air
The main advantage of trading using opposite Galaxy Entertainment and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment 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.| Galaxy Entertainment vs. PennantPark Floating Rate | Galaxy Entertainment vs. NuRAN Wireless | Galaxy Entertainment vs. Radcom | Galaxy Entertainment vs. Glacier Bancorp |
| Sealed Air vs. Avery Dennison Corp | Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Packaging Corp of |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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