Correlation Between 31620MBY1 and Sealed Air

Can any of the company-specific risk be diversified away by investing in both 31620MBY1 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 31620MBY1 and Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FIS 51 15 JUL 32 and Sealed Air, you can compare the effects of market volatilities on 31620MBY1 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 31620MBY1 with a short position of Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of 31620MBY1 and Sealed Air.

Diversification Opportunities for 31620MBY1 and Sealed Air

-0.64

Correlation Coefficient

31620MBY1  Sealed Air

Excellent diversification

The 3 months correlation between 31620MBY1 and Sealed is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding FIS 51 15 JUL 32 and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air and 31620MBY1 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 FIS 51 15 JUL 32 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 31620MBY1 i.e., 31620MBY1 and Sealed Air go up and down completely randomly.

Pair Corralation between 31620MBY1 and Sealed Air

Assuming the 90 days trading horizon FIS 51 15 JUL 32 is expected to under-perform the Sealed Air. But the bond apears to be less risky and, when comparing its historical volatility, FIS 51 15 JUL 32 is 1.45 times less risky than Sealed Air. The bond trades about -0.13 of its potential returns per unit of risk. The Sealed Air is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3,282  in Sealed Air on September 12, 2024 and sell it today you would earn a total of  402.00  from holding Sealed Air or generate 12.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

FIS 51 15 JUL 32  vs.  Sealed Air

FIS 51 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FIS 51 15 JUL 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for FIS 51 15 JUL 32 investors.

Sealed Air

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sealed Air are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, Sealed Air may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with 31620MBY1 and Sealed Air

The main advantage of trading using opposite 31620MBY1 and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 31620MBY1 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.

The idea behind FIS 51 15 JUL 32 and Sealed Air pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.