Correlation Between Sealed Air and GENERAL
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By analyzing existing cross correlation between Sealed Air and GENERAL MTRS FINL, you can compare the effects of market volatilities on Sealed Air and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and GENERAL.
Diversification Opportunities for Sealed Air and GENERAL
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sealed and GENERAL is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and GENERAL MTRS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS FINL 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MTRS FINL has no effect on the direction of Sealed Air i.e., Sealed Air and GENERAL go up and down completely randomly.
Pair Corralation between Sealed Air and GENERAL
Considering the 90-day investment horizon Sealed Air is expected to under-perform the GENERAL. In addition to that, Sealed Air is 3.13 times more volatile than GENERAL MTRS FINL. It trades about -0.02 of its total potential returns per unit of risk. GENERAL MTRS FINL is currently generating about 0.02 per unit of volatility. If you would invest 9,251 in GENERAL MTRS FINL on September 4, 2024 and sell it today you would earn a total of 492.00 from holding GENERAL MTRS FINL or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.97% |
| Values | Daily Returns |
Sealed Air vs. GENERAL MTRS FINL
Performance |
| Timeline |
| Sealed Air |
| GENERAL MTRS FINL |
Sealed Air and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and GENERAL
The main advantage of trading using opposite Sealed Air and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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