Correlation Between Hitachi Metals and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Hitachi 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 Hitachi 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 Hitachi Metals and Sealed Air, you can compare the effects of market volatilities on Hitachi 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 Hitachi Metals with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi Metals and Sealed Air.
Diversification Opportunities for Hitachi Metals and Sealed Air
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hitachi and Sealed is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi Metals and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air and Hitachi 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 Hitachi Metals 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 Hitachi Metals i.e., Hitachi Metals and Sealed Air go up and down completely randomly.
Pair Corralation between Hitachi Metals and Sealed Air
If you would invest 5,100 in Hitachi Metals on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Hitachi Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hitachi Metals vs. Sealed Air
Performance |
| Timeline |
| Hitachi Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sealed Air |
Hitachi Metals and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi Metals and Sealed Air
The main advantage of trading using opposite Hitachi Metals and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi 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.| Hitachi Metals vs. Sealed Air | Hitachi Metals vs. CF Industries Holdings | Hitachi Metals vs. Hudson Technologies | Hitachi Metals vs. Flexible Solutions International |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |