Correlation Between ARDAGH METAL and INPOST SA
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and INPOST SA 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 INPOST SA 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 INPOST SA EO, you can compare the effects of market volatilities on ARDAGH METAL and INPOST SA 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 INPOST SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and INPOST SA.
Diversification Opportunities for ARDAGH METAL and INPOST SA
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between ARDAGH and INPOST is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and INPOST SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPOST SA EO 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 INPOST SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPOST SA EO has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and INPOST SA go up and down completely randomly.
Pair Corralation between ARDAGH METAL and INPOST SA
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the INPOST SA. In addition to that, ARDAGH METAL is 2.33 times more volatile than INPOST SA EO. It trades about -0.08 of its total potential returns per unit of risk. INPOST SA EO is currently generating about -0.16 per unit of volatility. If you would invest 1,826 in INPOST SA EO on October 26, 2024 and sell it today you would lose (265.00) from holding INPOST SA EO or give up 14.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. INPOST SA EO
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| INPOST SA EO |
ARDAGH METAL and INPOST SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and INPOST SA
The main advantage of trading using opposite ARDAGH METAL and INPOST SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, INPOST SA 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 INPOST SA will offset losses from the drop in INPOST SA's long position.| ARDAGH METAL vs. NTT DATA | ARDAGH METAL vs. Texas Roadhouse | ARDAGH METAL vs. China Datang | ARDAGH METAL vs. SAFEROADS HLDGS |
| INPOST SA vs. AUST AGRICULTURAL | INPOST SA vs. InPlay Oil Corp | INPOST SA vs. Clean Energy Fuels | INPOST SA vs. AGRICULTBK HADR25 YC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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