Correlation Between Siriuspoint and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Siriuspoint and Sealed Air 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 Siriuspoint and Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and Sealed Air, you can compare the effects of market volatilities on Siriuspoint and Sealed Air 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 Siriuspoint with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and Sealed Air.
Diversification Opportunities for Siriuspoint and Sealed Air
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siriuspoint and Sealed is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air and Siriuspoint 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 Siriuspoint are associated (or correlated) with Sealed Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sealed Air has no effect on the direction of Siriuspoint i.e., Siriuspoint and Sealed Air go up and down completely randomly.
Pair Corralation between Siriuspoint and Sealed Air
Given the investment horizon of 90 days Siriuspoint is expected to generate 0.94 times more return on investment than Sealed Air. However, Siriuspoint is 1.06 times less risky than Sealed Air. It trades about 0.11 of its potential returns per unit of risk. Sealed Air is currently generating about -0.02 per unit of risk. If you would invest 598.00 in Siriuspoint on August 26, 2024 and sell it today you would earn a total of 960.00 from holding Siriuspoint or generate 160.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siriuspoint vs. Sealed Air
Performance |
| Timeline |
| Siriuspoint |
| Sealed Air |
Siriuspoint and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and Sealed Air
The main advantage of trading using opposite Siriuspoint and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint position performs unexpectedly, Sealed Air 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 Sealed Air will offset losses from the drop in Sealed Air's long position.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
| Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Reynolds Consumer Products | Sealed Air vs. Ball Corporation |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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