Correlation Between SEALED AIR and Dno ASA
Can any of the company-specific risk be diversified away by investing in both SEALED AIR and Dno ASA 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 Dno ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEALED AIR and Dno ASA, you can compare the effects of market volatilities on SEALED AIR and Dno ASA 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 Dno ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEALED AIR and Dno ASA.
Diversification Opportunities for SEALED AIR and Dno ASA
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SEALED and Dno is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding SEALED AIR and Dno ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dno ASA 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 Dno ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dno ASA has no effect on the direction of SEALED AIR i.e., SEALED AIR and Dno ASA go up and down completely randomly.
Pair Corralation between SEALED AIR and Dno ASA
Assuming the 90 days trading horizon SEALED AIR is expected to generate 0.9 times more return on investment than Dno ASA. However, SEALED AIR is 1.11 times less risky than Dno ASA. It trades about 0.11 of its potential returns per unit of risk. Dno ASA is currently generating about 0.06 per unit of risk. If you would invest 3,260 in SEALED AIR on October 26, 2024 and sell it today you would earn a total of 60.00 from holding SEALED AIR or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEALED AIR vs. Dno ASA
Performance |
| Timeline |
| SEALED AIR |
| Dno ASA |
SEALED AIR and Dno ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEALED AIR and Dno ASA
The main advantage of trading using opposite SEALED AIR and Dno ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALED AIR position performs unexpectedly, Dno ASA 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 Dno ASA will offset losses from the drop in Dno ASA's long position.| SEALED AIR vs. SQUIRREL MEDIA SA | SEALED AIR vs. ANTA SPORTS PRODUCT | SEALED AIR vs. Nexstar Media Group | SEALED AIR vs. COMBA TELECOM SYST |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |