Correlation Between SEALED AIR and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both SEALED AIR and ARDAGH METAL 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 SEALED AIR and ARDAGH METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEALED AIR and ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on SEALED AIR and ARDAGH METAL 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 SEALED AIR with a short position of ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEALED AIR and ARDAGH METAL.
Diversification Opportunities for SEALED AIR and ARDAGH METAL
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEALED and ARDAGH is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SEALED AIR and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL and SEALED AIR 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 SEALED AIR are associated (or correlated) with ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of SEALED AIR i.e., SEALED AIR and ARDAGH METAL go up and down completely randomly.
Pair Corralation between SEALED AIR and ARDAGH METAL
Assuming the 90 days trading horizon SEALED AIR is expected to generate 0.53 times more return on investment than ARDAGH METAL. However, SEALED AIR is 1.88 times less risky than ARDAGH METAL. It trades about 0.02 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about -0.01 per unit of risk. If you would invest 3,180 in SEALED AIR on October 18, 2024 and sell it today you would earn a total of 80.00 from holding SEALED AIR or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
SEALED AIR vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| SEALED AIR |
| ARDAGH METAL PACDL |
SEALED AIR and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEALED AIR and ARDAGH METAL
The main advantage of trading using opposite SEALED AIR and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALED AIR position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| SEALED AIR vs. NorAm Drilling AS | SEALED AIR vs. Zoom Video Communications | SEALED AIR vs. PARKEN Sport Entertainment | SEALED AIR vs. Major Drilling Group |
| ARDAGH METAL vs. PLAY2CHILL SA ZY | ARDAGH METAL vs. Aristocrat Leisure Limited | ARDAGH METAL vs. SEALED AIR | ARDAGH METAL vs. Columbia Sportswear |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |