Correlation Between Sealed Air and Global Gas
Can any of the company-specific risk be diversified away by investing in both Sealed Air and Global Gas 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 Global Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sealed Air and Global Gas, you can compare the effects of market volatilities on Sealed Air and Global Gas 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 Global Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and Global Gas.
Diversification Opportunities for Sealed Air and Global Gas
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sealed and Global is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and Global Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gas 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 Global Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gas has no effect on the direction of Sealed Air i.e., Sealed Air and Global Gas go up and down completely randomly.
Pair Corralation between Sealed Air and Global Gas
Considering the 90-day investment horizon Sealed Air is expected to generate 30.25 times less return on investment than Global Gas. But when comparing it to its historical volatility, Sealed Air is 12.64 times less risky than Global Gas. It trades about 0.03 of its potential returns per unit of risk. Global Gas is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6.95 in Global Gas on September 12, 2024 and sell it today you would lose (5.95) from holding Global Gas or give up 85.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 40.79% |
| Values | Daily Returns |
Sealed Air vs. Global Gas
Performance |
| Timeline |
| Sealed Air |
| Global Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sealed Air and Global Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and Global Gas
The main advantage of trading using opposite Sealed Air and Global Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, Global Gas 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 Global Gas will offset losses from the drop in Global Gas' long position.| Sealed Air vs. Avery Dennison Corp | Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Packaging Corp of |
| Global Gas vs. FitLife Brands, Common | Global Gas vs. Axalta Coating Systems | Global Gas vs. Sealed Air | Global Gas vs. Hf Foods Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |