Correlation Between ARDAGH METAL and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and GREENX METALS 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 GREENX METALS 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 GREENX METALS LTD, you can compare the effects of market volatilities on ARDAGH METAL and GREENX METALS 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 GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and GREENX METALS.
Diversification Opportunities for ARDAGH METAL and GREENX METALS
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ARDAGH and GREENX is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and GREENX METALS go up and down completely randomly.
Pair Corralation between ARDAGH METAL and GREENX METALS
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to generate 0.72 times more return on investment than GREENX METALS. However, ARDAGH METAL PACDL 0001 is 1.38 times less risky than GREENX METALS. It trades about 0.01 of its potential returns per unit of risk. GREENX METALS LTD is currently generating about -0.14 per unit of risk. If you would invest 340.00 in ARDAGH METAL PACDL 0001 on August 25, 2024 and sell it today you would earn a total of 0.00 from holding ARDAGH METAL PACDL 0001 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. GREENX METALS LTD
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| GREENX METALS LTD |
ARDAGH METAL and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and GREENX METALS
The main advantage of trading using opposite ARDAGH METAL and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.| ARDAGH METAL vs. AptarGroup | ARDAGH METAL vs. Superior Plus Corp | ARDAGH METAL vs. NMI Holdings | ARDAGH METAL vs. Origin Agritech |
| GREENX METALS vs. PERENNIAL ENERGY HD 01 | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |