Correlation Between SIMON and Sealed Air

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

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

Diversification Opportunities for SIMON and Sealed Air

-0.05

Correlation Coefficient

SIMON  Sealed Air

Good diversification

The 3 months correlation between SIMON and Sealed is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SIMON PPTY GROUP and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air and SIMON 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 SIMON PPTY GROUP 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 SIMON i.e., SIMON and Sealed Air go up and down completely randomly.

Pair Corralation between SIMON and Sealed Air

Assuming the 90 days trading horizon SIMON PPTY GROUP is expected to under-perform the Sealed Air. But the bond apears to be less risky and, when comparing its historical volatility, SIMON PPTY GROUP is 1.93 times less risky than Sealed Air. The bond trades about -0.11 of its potential returns per unit of risk. The Sealed Air is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,181  in Sealed Air on July 1, 2025 and sell it today you would earn a total of  261.00  from holding Sealed Air or generate 8.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

SIMON PPTY GROUP  vs.  Sealed Air

SIMON PPTY GROUP

Risk-Adjusted Performance

Weakest

Over the last 90 days SIMON PPTY GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SIMON is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sealed Air

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Sealed Air are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Sealed Air may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with SIMON and Sealed Air

The main advantage of trading using opposite SIMON and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIMON 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 SIMON PPTY GROUP 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.