Correlation Between SOUTHERN and Sealed Air
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By analyzing existing cross correlation between SOUTHERN 425 percent and Sealed Air, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Sealed Air.
Diversification Opportunities for SOUTHERN and Sealed Air
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SOUTHERN and Sealed is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN 425 percent and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air and SOUTHERN 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 SOUTHERN 425 percent 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 SOUTHERN i.e., SOUTHERN and Sealed Air go up and down completely randomly.
Pair Corralation between SOUTHERN and Sealed Air
Assuming the 90 days trading horizon SOUTHERN 425 percent is expected to generate 42.86 times more return on investment than Sealed Air. However, SOUTHERN is 42.86 times more volatile than Sealed Air. It trades about 0.08 of its potential returns per unit of risk. Sealed Air is currently generating about 0.03 per unit of risk. If you would invest 0.00 in SOUTHERN 425 percent on September 12, 2024 and sell it today you would earn a total of 9,282 from holding SOUTHERN 425 percent or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.66% |
| Values | Daily Returns |
SOUTHERN 425 percent vs. Sealed Air
Performance |
| Timeline |
| SOUTHERN 425 percent |
| Sealed Air |
SOUTHERN and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Sealed Air
The main advantage of trading using opposite SOUTHERN and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. Sealed Air | SOUTHERN vs. CF Industries Holdings | SOUTHERN vs. NL Industries | SOUTHERN vs. The Mosaic |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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