Correlation Between Sealed Air and COLUMBIA
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By analyzing existing cross correlation between Sealed Air and COLUMBIA PIPELINE GROUP, you can compare the effects of market volatilities on Sealed Air and COLUMBIA 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 COLUMBIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and COLUMBIA.
Diversification Opportunities for Sealed Air and COLUMBIA
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sealed and COLUMBIA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and COLUMBIA PIPELINE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA PIPELINE 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 COLUMBIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLUMBIA PIPELINE has no effect on the direction of Sealed Air i.e., Sealed Air and COLUMBIA go up and down completely randomly.
Pair Corralation between Sealed Air and COLUMBIA
Considering the 90-day investment horizon Sealed Air is expected to under-perform the COLUMBIA. But the stock apears to be less risky and, when comparing its historical volatility, Sealed Air is 22.64 times less risky than COLUMBIA. The stock trades about -0.01 of its potential returns per unit of risk. The COLUMBIA PIPELINE GROUP is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,894 in COLUMBIA PIPELINE GROUP on September 12, 2024 and sell it today you would lose (33.00) from holding COLUMBIA PIPELINE GROUP or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.96% |
| Values | Daily Returns |
Sealed Air vs. COLUMBIA PIPELINE GROUP
Performance |
| Timeline |
| Sealed Air |
| COLUMBIA PIPELINE |
Sealed Air and COLUMBIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and COLUMBIA
The main advantage of trading using opposite Sealed Air and COLUMBIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, COLUMBIA 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 COLUMBIA will offset losses from the drop in COLUMBIA'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 |
| COLUMBIA vs. Valens | COLUMBIA vs. Texas Roadhouse | COLUMBIA vs. Rave Restaurant Group | COLUMBIA vs. ClearOne |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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