Correlation Between Sealed Air and Paragon Offshore
Can any of the company-specific risk be diversified away by investing in both Sealed Air and Paragon Offshore 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 Paragon Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sealed Air and Paragon Offshore Plc, you can compare the effects of market volatilities on Sealed Air and Paragon Offshore 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 Paragon Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and Paragon Offshore.
Diversification Opportunities for Sealed Air and Paragon Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sealed and Paragon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and Paragon Offshore Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paragon Offshore Plc 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 Paragon Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paragon Offshore Plc has no effect on the direction of Sealed Air i.e., Sealed Air and Paragon Offshore go up and down completely randomly.
Pair Corralation between Sealed Air and Paragon Offshore
If you would invest 3,282 in Sealed Air on September 12, 2024 and sell it today you would earn a total of 329.00 from holding Sealed Air or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sealed Air vs. Paragon Offshore Plc
Performance |
| Timeline |
| Sealed Air |
| Paragon Offshore Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sealed Air and Paragon Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and Paragon Offshore
The main advantage of trading using opposite Sealed Air and Paragon Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, Paragon Offshore 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 Paragon Offshore will offset losses from the drop in Paragon Offshore's long position.| Sealed Air vs. Avery Dennison Corp | Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Packaging Corp of |
| Paragon Offshore vs. Analog Devices | Paragon Offshore vs. Tower Semiconductor | Paragon Offshore vs. National CineMedia | Paragon Offshore vs. Amkor Technology |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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