Correlation Between SEALED AIR and Apple
Can any of the company-specific risk be diversified away by investing in both SEALED AIR and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEALED AIR and Apple Inc, you can compare the effects of market volatilities on SEALED AIR and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEALED AIR and Apple.
Diversification Opportunities for SEALED AIR and Apple
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between SEALED and Apple is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SEALED AIR and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of SEALED AIR i.e., SEALED AIR and Apple go up and down completely randomly.
Pair Corralation between SEALED AIR and Apple
Assuming the 90 days trading horizon SEALED AIR is expected to generate 0.76 times more return on investment than Apple. However, SEALED AIR is 1.31 times less risky than Apple. It trades about 0.18 of its potential returns per unit of risk. Apple Inc is currently generating about -0.32 per unit of risk. If you would invest 3,240 in SEALED AIR on October 21, 2024 and sell it today you would earn a total of 100.00 from holding SEALED AIR or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEALED AIR vs. Apple Inc
Performance |
| Timeline |
| SEALED AIR |
| Apple Inc |
SEALED AIR and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEALED AIR and Apple
The main advantage of trading using opposite SEALED AIR and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALED AIR position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| SEALED AIR vs. Charter Communications | SEALED AIR vs. TOREX SEMICONDUCTOR LTD | SEALED AIR vs. GMO Internet | SEALED AIR vs. NXP Semiconductors NV |
| Apple vs. SLR Investment Corp | Apple vs. ALBIS LEASING AG | Apple vs. AGNC INVESTMENT | Apple vs. PennantPark Investment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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