Correlation Between Sealed Air and FEDEX
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By analyzing existing cross correlation between Sealed Air and FEDEX P 405, you can compare the effects of market volatilities on Sealed Air and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and FEDEX.
Diversification Opportunities for Sealed Air and FEDEX
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sealed and FEDEX is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and FEDEX P 405 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 405 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 405 has no effect on the direction of Sealed Air i.e., Sealed Air and FEDEX go up and down completely randomly.
Pair Corralation between Sealed Air and FEDEX
Considering the 90-day investment horizon Sealed Air is expected to generate 1.95 times more return on investment than FEDEX. However, Sealed Air is 1.95 times more volatile than FEDEX P 405. It trades about 0.01 of its potential returns per unit of risk. FEDEX P 405 is currently generating about 0.0 per unit of risk. If you would invest 3,573 in Sealed Air on September 14, 2024 and sell it today you would earn a total of 5.00 from holding Sealed Air or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.18% |
| Values | Daily Returns |
Sealed Air vs. FEDEX P 405
Performance |
| Timeline |
| Sealed Air |
| FEDEX P 405 |
Sealed Air and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and FEDEX
The main advantage of trading using opposite Sealed Air and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX'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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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