Correlation Between Sealed Air and United States

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

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

Diversification Opportunities for Sealed Air and United States

0.43

Correlation Coefficient

Sealed Air  United States

Very weak diversification

The 3 months correlation between Sealed and United is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and United States Lime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Lime and Sealed Air 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 Sealed Air are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Lime has no effect on the direction of Sealed Air i.e., Sealed Air and United States go up and down completely randomly.

Pair Corralation between Sealed Air and United States

Considering the 90-day investment horizon Sealed Air is expected to generate 4.0 times less return on investment than United States. But when comparing it to its historical volatility, Sealed Air is 1.31 times less risky than United States. It trades about 0.02 of its potential returns per unit of risk. United States Lime is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  9,848  in United States Lime on May 6, 2025 and sell it today you would earn a total of  516.00  from holding United States Lime or generate 5.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Sealed Air  vs.  United States Lime

Sealed Air

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sealed Air are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Sealed Air is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

United States Lime

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in United States Lime are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating essential indicators, United States may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Sealed Air and United States

The main advantage of trading using opposite Sealed Air and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.

The idea behind Sealed Air and United States Lime 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.