Correlation Between Sealed Air and TRAVELERS
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By analyzing existing cross correlation between Sealed Air and TRAVELERS INC 535, you can compare the effects of market volatilities on Sealed Air and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and TRAVELERS.
Diversification Opportunities for Sealed Air and TRAVELERS
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sealed and TRAVELERS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and TRAVELERS INC 535 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INC 535 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INC 535 has no effect on the direction of Sealed Air i.e., Sealed Air and TRAVELERS go up and down completely randomly.
Pair Corralation between Sealed Air and TRAVELERS
Considering the 90-day investment horizon Sealed Air is expected to generate 0.74 times more return on investment than TRAVELERS. However, Sealed Air is 1.36 times less risky than TRAVELERS. It trades about 0.04 of its potential returns per unit of risk. TRAVELERS INC 535 is currently generating about -0.12 per unit of risk. If you would invest 3,627 in Sealed Air on September 5, 2024 and sell it today you would earn a total of 38.00 from holding Sealed Air or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Sealed Air vs. TRAVELERS INC 535
Performance |
| Timeline |
| Sealed Air |
| TRAVELERS INC 535 |
Sealed Air and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and TRAVELERS
The main advantage of trading using opposite Sealed Air and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS'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 |
| TRAVELERS vs. Global Ship Lease | TRAVELERS vs. Lifevantage | TRAVELERS vs. First Ship Lease | TRAVELERS vs. Herc Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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