Correlation Between INTER CARS and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both INTER CARS and ARDAGH METAL 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 INTER CARS and ARDAGH METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTER CARS SA and ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on INTER CARS and ARDAGH METAL 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 INTER CARS with a short position of ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and ARDAGH METAL.
Diversification Opportunities for INTER CARS and ARDAGH METAL
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between INTER and ARDAGH is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL and INTER CARS 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 INTER CARS SA are associated (or correlated) with ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of INTER CARS i.e., INTER CARS and ARDAGH METAL go up and down completely randomly.
Pair Corralation between INTER CARS and ARDAGH METAL
Assuming the 90 days horizon INTER CARS SA is expected to generate 0.49 times more return on investment than ARDAGH METAL. However, INTER CARS SA is 2.06 times less risky than ARDAGH METAL. It trades about 0.33 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about -0.1 per unit of risk. If you would invest 11,780 in INTER CARS SA on October 25, 2024 and sell it today you would earn a total of 1,320 from holding INTER CARS SA or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTER CARS SA vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| INTER CARS SA |
| ARDAGH METAL PACDL |
INTER CARS and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and ARDAGH METAL
The main advantage of trading using opposite INTER CARS and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| INTER CARS vs. DXC Technology Co | INTER CARS vs. UPDATE SOFTWARE | INTER CARS vs. Micron Technology | INTER CARS vs. Mitsui Chemicals |
| ARDAGH METAL vs. ELL ENVIRONHLDGS HD 0001 | ARDAGH METAL vs. GRUPO CARSO A1 | ARDAGH METAL vs. INTER CARS SA | ARDAGH METAL vs. CarsalesCom |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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