Correlation Between SEALED AIR and TOPPS TILES
Can any of the company-specific risk be diversified away by investing in both SEALED AIR and TOPPS TILES 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 TOPPS TILES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEALED AIR and TOPPS TILES PLC, you can compare the effects of market volatilities on SEALED AIR and TOPPS TILES 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 TOPPS TILES. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEALED AIR and TOPPS TILES.
Diversification Opportunities for SEALED AIR and TOPPS TILES
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEALED and TOPPS is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SEALED AIR and TOPPS TILES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOPPS TILES PLC 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 TOPPS TILES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOPPS TILES PLC has no effect on the direction of SEALED AIR i.e., SEALED AIR and TOPPS TILES go up and down completely randomly.
Pair Corralation between SEALED AIR and TOPPS TILES
Assuming the 90 days trading horizon SEALED AIR is expected to generate 1.01 times more return on investment than TOPPS TILES. However, SEALED AIR is 1.01 times more volatile than TOPPS TILES PLC. It trades about -0.13 of its potential returns per unit of risk. TOPPS TILES PLC is currently generating about -0.13 per unit of risk. If you would invest 3,300 in SEALED AIR on December 1, 2024 and sell it today you would lose (160.00) from holding SEALED AIR or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEALED AIR vs. TOPPS TILES PLC
Performance |
| Timeline |
| SEALED AIR |
| TOPPS TILES PLC |
SEALED AIR and TOPPS TILES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEALED AIR and TOPPS TILES
The main advantage of trading using opposite SEALED AIR and TOPPS TILES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALED AIR position performs unexpectedly, TOPPS TILES 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 TOPPS TILES will offset losses from the drop in TOPPS TILES's long position.| SEALED AIR vs. Rocket Internet SE | SEALED AIR vs. GMO INTERNET | SEALED AIR vs. China Modern Dairy | SEALED AIR vs. Chengdu PUTIAN Telecommunications |
| TOPPS TILES vs. The Home Depot | TOPPS TILES vs. The Home Depot | TOPPS TILES vs. Floor Decor Holdings | TOPPS TILES vs. LESLIES INC DL |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |