Correlation Between Sealed Air and WELLS
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By analyzing existing cross correlation between Sealed Air and WELLS FARGO NEW, you can compare the effects of market volatilities on Sealed Air and WELLS 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 WELLS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and WELLS.
Diversification Opportunities for Sealed Air and WELLS
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sealed and WELLS is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and WELLS FARGO NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLS FARGO NEW 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 WELLS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLS FARGO NEW has no effect on the direction of Sealed Air i.e., Sealed Air and WELLS go up and down completely randomly.
Pair Corralation between Sealed Air and WELLS
Considering the 90-day investment horizon Sealed Air is expected to under-perform the WELLS. In addition to that, Sealed Air is 4.07 times more volatile than WELLS FARGO NEW. It trades about -0.03 of its total potential returns per unit of risk. WELLS FARGO NEW is currently generating about 0.01 per unit of volatility. If you would invest 9,696 in WELLS FARGO NEW on August 25, 2024 and sell it today you would earn a total of 100.00 from holding WELLS FARGO NEW or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Sealed Air vs. WELLS FARGO NEW
Performance |
| Timeline |
| Sealed Air |
| WELLS FARGO NEW |
Sealed Air and WELLS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and WELLS
The main advantage of trading using opposite Sealed Air and WELLS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, WELLS 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 WELLS will offset losses from the drop in WELLS'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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