Correlation Between SEALED AIR and Koninklijke Ahold
Specify exactly 2 symbols:
By analyzing existing cross correlation between SEALED AIR and Koninklijke Ahold Delhaize, you can compare the effects of market volatilities on SEALED AIR and Koninklijke Ahold 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 Koninklijke Ahold. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEALED AIR and Koninklijke Ahold.
Diversification Opportunities for SEALED AIR and Koninklijke Ahold
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEALED and Koninklijke is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SEALED AIR and Koninklijke Ahold Delhaize in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Ahold 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 Koninklijke Ahold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Ahold has no effect on the direction of SEALED AIR i.e., SEALED AIR and Koninklijke Ahold go up and down completely randomly.
Pair Corralation between SEALED AIR and Koninklijke Ahold
Assuming the 90 days trading horizon SEALED AIR is expected to generate 1.75 times more return on investment than Koninklijke Ahold. However, SEALED AIR is 1.75 times more volatile than Koninklijke Ahold Delhaize. It trades about 0.1 of its potential returns per unit of risk. Koninklijke Ahold Delhaize is currently generating about 0.01 per unit of risk. If you would invest 3,301 in SEALED AIR on September 14, 2024 and sell it today you would earn a total of 99.00 from holding SEALED AIR or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEALED AIR vs. Koninklijke Ahold Delhaize
Performance |
| Timeline |
| SEALED AIR |
| Koninklijke Ahold |
SEALED AIR and Koninklijke Ahold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEALED AIR and Koninklijke Ahold
The main advantage of trading using opposite SEALED AIR and Koninklijke Ahold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALED AIR position performs unexpectedly, Koninklijke Ahold 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 Koninklijke Ahold will offset losses from the drop in Koninklijke Ahold's long position.The idea behind SEALED AIR and Koninklijke Ahold Delhaize pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Koninklijke Ahold vs. Taiwan Semiconductor Manufacturing | Koninklijke Ahold vs. ON SEMICONDUCTOR | Koninklijke Ahold vs. SEALED AIR | Koninklijke Ahold vs. MYFAIR GOLD P |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |