Correlation Between SEALED AIR and Ringmetall

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SEALED AIR and Ringmetall 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 Ringmetall into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEALED AIR and Ringmetall SE, you can compare the effects of market volatilities on SEALED AIR and Ringmetall 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 Ringmetall. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEALED AIR and Ringmetall.

Diversification Opportunities for SEALED AIR and Ringmetall

SEALEDRingmetallDiversified AwaySEALEDRingmetallDiversified Away100%
-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between SEALED and Ringmetall is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SEALED AIR and Ringmetall SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ringmetall SE 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 Ringmetall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ringmetall SE has no effect on the direction of SEALED AIR i.e., SEALED AIR and Ringmetall go up and down completely randomly.

Pair Corralation between SEALED AIR and Ringmetall

Assuming the 90 days trading horizon SEALED AIR is expected to under-perform the Ringmetall. But the stock apears to be less risky and, when comparing its historical volatility, SEALED AIR is 3.64 times less risky than Ringmetall. The stock trades about -0.33 of its potential returns per unit of risk. The Ringmetall SE is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  343.00  in Ringmetall SE on November 23, 2024 and sell it today you would lose (17.00) from holding Ringmetall SE or give up 4.96% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SEALED AIR   vs.  Ringmetall SE

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015202530
JavaScript chart by amCharts 3.21.15SDA HP3A
       Timeline  
SEALED AIR 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SEALED AIR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb3131.53232.53333.53434.535
Ringmetall SE 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ringmetall SE are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Ringmetall reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.833.23.43.63.8

SEALED AIR and Ringmetall Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.09-1.59-1.09-0.59-0.09520.350.851.351.852.35 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15SDA HP3A
       Returns  

Pair Trading with SEALED AIR and Ringmetall

The main advantage of trading using opposite SEALED AIR and Ringmetall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALED AIR position performs unexpectedly, Ringmetall 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 Ringmetall will offset losses from the drop in Ringmetall's long position.
The idea behind SEALED AIR and Ringmetall SE 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.
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
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