Correlation Between Sealed Air and APACHE
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By analyzing existing cross correlation between Sealed Air and APACHE P 525, you can compare the effects of market volatilities on Sealed Air and APACHE 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 APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and APACHE.
Diversification Opportunities for Sealed Air and APACHE
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sealed and APACHE is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and APACHE P 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 525 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 APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 525 has no effect on the direction of Sealed Air i.e., Sealed Air and APACHE go up and down completely randomly.
Pair Corralation between Sealed Air and APACHE
Considering the 90-day investment horizon Sealed Air is expected to generate 0.97 times more return on investment than APACHE. However, Sealed Air is 1.03 times less risky than APACHE. It trades about 0.04 of its potential returns per unit of risk. APACHE P 525 is currently generating about -0.12 per unit of risk. If you would invest 3,618 in Sealed Air on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Sealed Air or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Sealed Air vs. APACHE P 525
Performance |
| Timeline |
| Sealed Air |
| APACHE P 525 |
Sealed Air and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and APACHE
The main advantage of trading using opposite Sealed Air and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE's long position.| Sealed Air vs. Packaging Corp of | Sealed Air vs. O I Glass | Sealed Air vs. Silgan Holdings | Sealed Air vs. International Paper |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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