Correlation Between Sealed Air and Volcan
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By analyzing existing cross correlation between Sealed Air and Volcan Compania Minera, you can compare the effects of market volatilities on Sealed Air and Volcan 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 Volcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and Volcan.
Diversification Opportunities for Sealed Air and Volcan
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sealed and Volcan is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and Volcan Compania Minera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volcan Compania Minera 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 Volcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volcan Compania Minera has no effect on the direction of Sealed Air i.e., Sealed Air and Volcan go up and down completely randomly.
Pair Corralation between Sealed Air and Volcan
Considering the 90-day investment horizon Sealed Air is expected to generate 0.25 times more return on investment than Volcan. However, Sealed Air is 4.01 times less risky than Volcan. It trades about 0.08 of its potential returns per unit of risk. Volcan Compania Minera is currently generating about -0.47 per unit of risk. If you would invest 3,538 in Sealed Air on September 13, 2024 and sell it today you would earn a total of 72.00 from holding Sealed Air or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Sealed Air vs. Volcan Compania Minera
Performance |
| Timeline |
| Sealed Air |
| Volcan Compania Minera |
Sealed Air and Volcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and Volcan
The main advantage of trading using opposite Sealed Air and Volcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, Volcan 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 Volcan will offset losses from the drop in Volcan'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 |
| Volcan vs. Xponential Fitness | Volcan vs. Teleflex Incorporated | Volcan vs. Viemed Healthcare | Volcan vs. Skechers USA |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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