Correlation Between Sealed Air and Curbline Properties
Can any of the company-specific risk be diversified away by investing in both Sealed Air and Curbline Properties 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 Curbline Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sealed Air and Curbline Properties Corp, you can compare the effects of market volatilities on Sealed Air and Curbline Properties 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 Curbline Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and Curbline Properties.
Diversification Opportunities for Sealed Air and Curbline Properties
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sealed and Curbline is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and Curbline Properties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curbline Properties Corp 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 Curbline Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curbline Properties Corp has no effect on the direction of Sealed Air i.e., Sealed Air and Curbline Properties go up and down completely randomly.
Pair Corralation between Sealed Air and Curbline Properties
Considering the 90-day investment horizon Sealed Air is expected to under-perform the Curbline Properties. But the stock apears to be less risky and, when comparing its historical volatility, Sealed Air is 1.66 times less risky than Curbline Properties. The stock trades about -0.34 of its potential returns per unit of risk. The Curbline Properties Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,343 in Curbline Properties Corp on October 15, 2024 and sell it today you would lose (2.00) from holding Curbline Properties Corp or give up 0.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sealed Air vs. Curbline Properties Corp
Performance |
| Timeline |
| Sealed Air |
| Curbline Properties Corp |
Sealed Air and Curbline Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and Curbline Properties
The main advantage of trading using opposite Sealed Air and Curbline Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, Curbline Properties 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 Curbline Properties will offset losses from the drop in Curbline Properties' long position.| Sealed Air vs. Avery Dennison Corp | Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Packaging Corp of |
| Curbline Properties vs. Cadence Design Systems | Curbline Properties vs. Air Products and | Curbline Properties vs. Sealed Air | Curbline Properties vs. NetSol Technologies |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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