Correlation Between Sealed Air and FG Annuities
Can any of the company-specific risk be diversified away by investing in both Sealed Air and FG Annuities 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 FG Annuities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sealed Air and FG Annuities Life, you can compare the effects of market volatilities on Sealed Air and FG Annuities 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 FG Annuities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and FG Annuities.
Diversification Opportunities for Sealed Air and FG Annuities
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sealed and FGN is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and FG Annuities Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Annuities Life 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 FG Annuities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Annuities Life has no effect on the direction of Sealed Air i.e., Sealed Air and FG Annuities go up and down completely randomly.
Pair Corralation between Sealed Air and FG Annuities
Considering the 90-day investment horizon Sealed Air is expected to under-perform the FG Annuities. In addition to that, Sealed Air is 5.13 times more volatile than FG Annuities Life. It trades about -0.02 of its total potential returns per unit of risk. FG Annuities Life is currently generating about 0.14 per unit of volatility. If you would invest 2,382 in FG Annuities Life on September 4, 2024 and sell it today you would earn a total of 348.00 from holding FG Annuities Life or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 49.7% |
| Values | Daily Returns |
Sealed Air vs. FG Annuities Life
Performance |
| Timeline |
| Sealed Air |
| FG Annuities Life |
Sealed Air and FG Annuities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and FG Annuities
The main advantage of trading using opposite Sealed Air and FG Annuities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, FG Annuities 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 FG Annuities will offset losses from the drop in FG Annuities' long position.| Sealed Air vs. Avery Dennison Corp | Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Packaging Corp of |
| FG Annuities vs. Ryman Hospitality Properties | FG Annuities vs. JD Sports Fashion | FG Annuities vs. The Wendys Co | FG Annuities vs. Academy Sports Outdoors |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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