Correlation Between ARDAGH METAL and MTY Food
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and MTY Food 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 MTY Food 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 MTY Food Group, you can compare the effects of market volatilities on ARDAGH METAL and MTY Food 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 MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and MTY Food.
Diversification Opportunities for ARDAGH METAL and MTY Food
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ARDAGH and MTY is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group 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 MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and MTY Food go up and down completely randomly.
Pair Corralation between ARDAGH METAL and MTY Food
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the MTY Food. In addition to that, ARDAGH METAL is 2.44 times more volatile than MTY Food Group. It trades about -0.16 of its total potential returns per unit of risk. MTY Food Group is currently generating about 0.1 per unit of volatility. If you would invest 3,215 in MTY Food Group on October 30, 2024 and sell it today you would earn a total of 165.00 from holding MTY Food Group or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. MTY Food Group
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| MTY Food Group |
ARDAGH METAL and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and MTY Food
The main advantage of trading using opposite ARDAGH METAL and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.| ARDAGH METAL vs. Globex Mining Enterprises | ARDAGH METAL vs. Constellation Software | ARDAGH METAL vs. Guidewire Software | ARDAGH METAL vs. CARSALESCOM |
| MTY Food vs. Q2M Managementberatung AG | MTY Food vs. Cars Inc | MTY Food vs. CEOTRONICS | MTY Food vs. URBAN OUTFITTERS |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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