Correlation Between Sealed Air and Weber
Can any of the company-specific risk be diversified away by investing in both Sealed Air and Weber at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sealed Air and Weber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sealed Air and Weber Inc, you can compare the effects of market volatilities on Sealed Air and Weber 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 Weber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and Weber.
Diversification Opportunities for Sealed Air and Weber
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sealed and Weber is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and Weber Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weber Inc 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 Weber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weber Inc has no effect on the direction of Sealed Air i.e., Sealed Air and Weber go up and down completely randomly.
Pair Corralation between Sealed Air and Weber
If you would invest 812.00 in Weber Inc on September 21, 2024 and sell it today you would earn a total of 0.00 from holding Weber Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Sealed Air vs. Weber Inc
Performance |
| Timeline |
| Sealed Air |
| Weber Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sealed Air and Weber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and Weber
The main advantage of trading using opposite Sealed Air and Weber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, Weber 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 Weber will offset losses from the drop in Weber'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 |
| Weber vs. Sensient Technologies | Weber vs. Sealed Air | Weber vs. Inflection Point Acquisition | Weber vs. Avient Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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