Correlation Between Dividend and Sealed Air

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

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

Diversification Opportunities for Dividend and Sealed Air

-0.25

Correlation Coefficient

Dividend  Sealed Air

Very good diversification

The 3 months correlation between Dividend and Sealed is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dividend 15 Split and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air and Dividend 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 Dividend 15 Split 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 Dividend i.e., Dividend and Sealed Air go up and down completely randomly.

Pair Corralation between Dividend and Sealed Air

Assuming the 90 days horizon Dividend 15 Split is expected to generate 0.5 times more return on investment than Sealed Air. However, Dividend 15 Split is 2.0 times less risky than Sealed Air. It trades about 0.22 of its potential returns per unit of risk. Sealed Air is currently generating about -0.35 per unit of risk. If you would invest  348.00  in Dividend 15 Split on October 11, 2024 and sell it today you would earn a total of  10.00  from holding Dividend 15 Split or generate 2.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Dividend 15 Split  vs.  Sealed Air

Dividend 15 Split

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dividend 15 Split are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental indicators, Dividend may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Sealed Air

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sealed Air has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Sealed Air is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Dividend and Sealed Air

The main advantage of trading using opposite Dividend and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dividend 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 Dividend 15 Split 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.