Correlation Between Treasury Wine and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Treasury Wine 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 Treasury Wine and Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Treasury Wine Estates and Sealed Air, you can compare the effects of market volatilities on Treasury Wine 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 Treasury Wine with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Treasury Wine and Sealed Air.
Diversification Opportunities for Treasury Wine and Sealed Air
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Treasury and Sealed is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Treasury Wine Estates and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air and Treasury Wine 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 Treasury Wine Estates 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 Treasury Wine i.e., Treasury Wine and Sealed Air go up and down completely randomly.
Pair Corralation between Treasury Wine and Sealed Air
Assuming the 90 days horizon Treasury Wine Estates is expected to under-perform the Sealed Air. In addition to that, Treasury Wine is 1.28 times more volatile than Sealed Air. It trades about -0.03 of its total potential returns per unit of risk. Sealed Air is currently generating about 0.02 per unit of volatility. If you would invest 3,619 in Sealed Air on September 12, 2024 and sell it today you would earn a total of 65.00 from holding Sealed Air or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Treasury Wine Estates vs. Sealed Air
Performance |
| Timeline |
| Treasury Wine Estates |
| Sealed Air |
Treasury Wine and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Treasury Wine and Sealed Air
The main advantage of trading using opposite Treasury Wine and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Treasury Wine 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.| Treasury Wine vs. Andrew Peller Limited | Treasury Wine vs. Aristocrat Group Corp | Treasury Wine vs. Iconic Brands | Treasury Wine vs. Naked Wines plc |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |