Correlation Between SEALED AIR and DAX Index
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By analyzing existing cross correlation between SEALED AIR and DAX Index, you can compare the effects of market volatilities on SEALED AIR and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEALED AIR and DAX Index.
Diversification Opportunities for SEALED AIR and DAX Index
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SEALED and DAX is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SEALED AIR and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of SEALED AIR i.e., SEALED AIR and DAX Index go up and down completely randomly.
Pair Corralation between SEALED AIR and DAX Index
Assuming the 90 days trading horizon SEALED AIR is expected to under-perform the DAX Index. In addition to that, SEALED AIR is 2.53 times more volatile than DAX Index. It trades about -0.02 of its total potential returns per unit of risk. DAX Index is currently generating about 0.09 per unit of volatility. If you would invest 1,548,200 in DAX Index on November 8, 2024 and sell it today you would earn a total of 610,393 from holding DAX Index or generate 39.43% 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. DAX Index
Performance |
| Timeline |
SEALED AIR and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
SEALED AIR
Pair trading matchups for SEALED AIR
DAX Index
Pair trading matchups for DAX Index
Pair Trading with SEALED AIR and DAX Index
The main advantage of trading using opposite SEALED AIR and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALED AIR position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| SEALED AIR vs. Playtech plc | SEALED AIR vs. Firan Technology Group | SEALED AIR vs. National Retail Properties | SEALED AIR vs. CARSALESCOM |
| DAX Index vs. RCI Hospitality Holdings | DAX Index vs. ecotel communication ag | DAX Index vs. Universal Health Realty | DAX Index vs. Infrastrutture Wireless Italiane |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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