Correlation Between Sealed Air and PROCTER
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By analyzing existing cross correlation between Sealed Air and PROCTER GAMBLE 35, you can compare the effects of market volatilities on Sealed Air and PROCTER 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 PROCTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and PROCTER.
Diversification Opportunities for Sealed Air and PROCTER
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sealed and PROCTER is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and PROCTER GAMBLE 35 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROCTER GAMBLE 35 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 PROCTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROCTER GAMBLE 35 has no effect on the direction of Sealed Air i.e., Sealed Air and PROCTER go up and down completely randomly.
Pair Corralation between Sealed Air and PROCTER
Considering the 90-day investment horizon Sealed Air is expected to generate 2.25 times less return on investment than PROCTER. But when comparing it to its historical volatility, Sealed Air is 1.6 times less risky than PROCTER. It trades about 0.05 of its potential returns per unit of risk. PROCTER GAMBLE 35 is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,471 in PROCTER GAMBLE 35 on September 2, 2024 and sell it today you would earn a total of 427.00 from holding PROCTER GAMBLE 35 or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 46.88% |
| Values | Daily Returns |
Sealed Air vs. PROCTER GAMBLE 35
Performance |
| Timeline |
| Sealed Air |
| PROCTER GAMBLE 35 |
Sealed Air and PROCTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and PROCTER
The main advantage of trading using opposite Sealed Air and PROCTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, PROCTER 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 PROCTER will offset losses from the drop in PROCTER'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 |
| PROCTER vs. Chemours Co | PROCTER vs. Mesa Air Group | PROCTER vs. Sun Country Airlines | PROCTER vs. Sealed Air |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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