Correlation Between ARDAGH METAL and InPlay Oil
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and InPlay Oil 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 InPlay Oil 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 InPlay Oil Corp, you can compare the effects of market volatilities on ARDAGH METAL and InPlay Oil 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 InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and InPlay Oil.
Diversification Opportunities for ARDAGH METAL and InPlay Oil
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ARDAGH and InPlay is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp 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 InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and InPlay Oil go up and down completely randomly.
Pair Corralation between ARDAGH METAL and InPlay Oil
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to generate 1.64 times more return on investment than InPlay Oil. However, ARDAGH METAL is 1.64 times more volatile than InPlay Oil Corp. It trades about -0.02 of its potential returns per unit of risk. InPlay Oil Corp is currently generating about -0.1 per unit of risk. If you would invest 326.00 in ARDAGH METAL PACDL 0001 on September 24, 2024 and sell it today you would lose (42.00) from holding ARDAGH METAL PACDL 0001 or give up 12.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. InPlay Oil Corp
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| InPlay Oil Corp |
ARDAGH METAL and InPlay Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and InPlay Oil
The main advantage of trading using opposite ARDAGH METAL and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil's long position.| ARDAGH METAL vs. Electronic Arts | ARDAGH METAL vs. BJs Wholesale Club | ARDAGH METAL vs. National Retail Properties | ARDAGH METAL vs. Meiko Electronics Co |
| InPlay Oil vs. CompuGroup Medical SE | InPlay Oil vs. IMPERIAL TOBACCO | InPlay Oil vs. Compugroup Medical SE | InPlay Oil vs. Apollo Medical Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |