Correlation Between WestRock and Sealed Air
Can any of the company-specific risk be diversified away by investing in both WestRock 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 WestRock and Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WestRock Co and Sealed Air, you can compare the effects of market volatilities on WestRock 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 WestRock with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of WestRock and Sealed Air.
Diversification Opportunities for WestRock and Sealed Air
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WestRock and Sealed is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding WestRock Co and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air and WestRock 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 WestRock Co 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 WestRock i.e., WestRock and Sealed Air go up and down completely randomly.
Pair Corralation between WestRock and Sealed Air
If you would invest 3,666 in Sealed Air on August 28, 2024 and sell it today you would lose (5.00) from holding Sealed Air or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
WestRock Co vs. Sealed Air
Performance |
| Timeline |
| WestRock |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sealed Air |
WestRock and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WestRock and Sealed Air
The main advantage of trading using opposite WestRock and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WestRock 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.| WestRock vs. Packaging Corp of | WestRock vs. Sealed Air | WestRock vs. Fortive Corp | WestRock vs. LKQ Corporation |
| Sealed Air vs. Sonoco Products | Sealed Air vs. Reynolds Consumer Products | Sealed Air vs. Ball Corporation | Sealed Air vs. Crown Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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