Correlation Between ARDAGH METAL and Hastings Technology
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and Hastings Technology 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 ARDAGH METAL and Hastings Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARDAGH METAL PACDL 0001 and Hastings Technology Metals, you can compare the effects of market volatilities on ARDAGH METAL and Hastings Technology 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 ARDAGH METAL with a short position of Hastings Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and Hastings Technology.
Diversification Opportunities for ARDAGH METAL and Hastings Technology
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ARDAGH and Hastings is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and Hastings Technology Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hastings Technology and ARDAGH METAL 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 ARDAGH METAL PACDL 0001 are associated (or correlated) with Hastings Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hastings Technology has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and Hastings Technology go up and down completely randomly.
Pair Corralation between ARDAGH METAL and Hastings Technology
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to generate 0.4 times more return on investment than Hastings Technology. However, ARDAGH METAL PACDL 0001 is 2.51 times less risky than Hastings Technology. It trades about 0.02 of its potential returns per unit of risk. Hastings Technology Metals is currently generating about 0.01 per unit of risk. If you would invest 308.00 in ARDAGH METAL PACDL 0001 on September 14, 2024 and sell it today you would earn a total of 6.00 from holding ARDAGH METAL PACDL 0001 or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. Hastings Technology Metals
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| Hastings Technology |
ARDAGH METAL and Hastings Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and Hastings Technology
The main advantage of trading using opposite ARDAGH METAL and Hastings Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, Hastings Technology 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 Hastings Technology will offset losses from the drop in Hastings Technology's long position.| ARDAGH METAL vs. Packaging of | ARDAGH METAL vs. Graphic Packaging Holding | ARDAGH METAL vs. Superior Plus Corp | ARDAGH METAL vs. SIVERS SEMICONDUCTORS AB |
| Hastings Technology vs. ATRYS HEALTH SA | Hastings Technology vs. Canadian Utilities Limited | Hastings Technology vs. UNITED UTILITIES GR | Hastings Technology vs. G8 EDUCATION |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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