Correlation Between Sealed Air and SOUTHWEST
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By analyzing existing cross correlation between Sealed Air and SOUTHWEST AIRLS 345, you can compare the effects of market volatilities on Sealed Air and SOUTHWEST 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 SOUTHWEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and SOUTHWEST.
Diversification Opportunities for Sealed Air and SOUTHWEST
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sealed and SOUTHWEST is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and SOUTHWEST AIRLS 345 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHWEST AIRLS 345 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 SOUTHWEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHWEST AIRLS 345 has no effect on the direction of Sealed Air i.e., Sealed Air and SOUTHWEST go up and down completely randomly.
Pair Corralation between Sealed Air and SOUTHWEST
Considering the 90-day investment horizon Sealed Air is expected to generate 1.98 times more return on investment than SOUTHWEST. However, Sealed Air is 1.98 times more volatile than SOUTHWEST AIRLS 345. It trades about 0.04 of its potential returns per unit of risk. SOUTHWEST AIRLS 345 is currently generating about -0.05 per unit of risk. If you would invest 3,627 in Sealed Air on September 3, 2024 and sell it today you would earn a total of 33.00 from holding Sealed Air or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Sealed Air vs. SOUTHWEST AIRLS 345
Performance |
| Timeline |
| Sealed Air |
| SOUTHWEST AIRLS 345 |
Sealed Air and SOUTHWEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and SOUTHWEST
The main advantage of trading using opposite Sealed Air and SOUTHWEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, SOUTHWEST 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 SOUTHWEST will offset losses from the drop in SOUTHWEST'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 |
| SOUTHWEST vs. Origin Materials | SOUTHWEST vs. Sealed Air | SOUTHWEST vs. Mativ Holdings | SOUTHWEST vs. Stepan Company |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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