Correlation Between Sealed Air and 05329WAN2
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By analyzing existing cross correlation between Sealed Air and AutoNation 35 percent, you can compare the effects of market volatilities on Sealed Air and 05329WAN2 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 05329WAN2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and 05329WAN2.
Diversification Opportunities for Sealed Air and 05329WAN2
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sealed and 05329WAN2 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and AutoNation 35 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoNation 35 percent 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 05329WAN2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AutoNation 35 percent has no effect on the direction of Sealed Air i.e., Sealed Air and 05329WAN2 go up and down completely randomly.
Pair Corralation between Sealed Air and 05329WAN2
Considering the 90-day investment horizon Sealed Air is expected to generate 4.96 times more return on investment than 05329WAN2. However, Sealed Air is 4.96 times more volatile than AutoNation 35 percent. It trades about 0.02 of its potential returns per unit of risk. AutoNation 35 percent is currently generating about -0.01 per unit of risk. If you would invest 3,520 in Sealed Air on September 12, 2024 and sell it today you would earn a total of 164.00 from holding Sealed Air or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.27% |
| Values | Daily Returns |
Sealed Air vs. AutoNation 35 percent
Performance |
| Timeline |
| Sealed Air |
| AutoNation 35 percent |
Sealed Air and 05329WAN2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and 05329WAN2
The main advantage of trading using opposite Sealed Air and 05329WAN2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, 05329WAN2 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 05329WAN2 will offset losses from the drop in 05329WAN2'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 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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