Correlation Between ARDAGH METAL and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and Gaztransport Technigaz 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 Gaztransport Technigaz 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 Gaztransport Technigaz SA, you can compare the effects of market volatilities on ARDAGH METAL and Gaztransport Technigaz 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 Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and Gaztransport Technigaz.
Diversification Opportunities for ARDAGH METAL and Gaztransport Technigaz
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ARDAGH and Gaztransport is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz 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 Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between ARDAGH METAL and Gaztransport Technigaz
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the Gaztransport Technigaz. In addition to that, ARDAGH METAL is 2.09 times more volatile than Gaztransport Technigaz SA. It trades about -0.07 of its total potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.34 per unit of volatility. If you would invest 12,760 in Gaztransport Technigaz SA on November 1, 2024 and sell it today you would earn a total of 1,770 from holding Gaztransport Technigaz SA or generate 13.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| Gaztransport Technigaz |
ARDAGH METAL and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and Gaztransport Technigaz
The main advantage of trading using opposite ARDAGH METAL and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, Gaztransport Technigaz 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 Gaztransport Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.| ARDAGH METAL vs. Casio Computer CoLtd | ARDAGH METAL vs. DXC Technology Co | ARDAGH METAL vs. AGNC INVESTMENT | ARDAGH METAL vs. ECHO INVESTMENT ZY |
| Gaztransport Technigaz vs. Apollo Medical Holdings | Gaztransport Technigaz vs. CREO MEDICAL GRP | Gaztransport Technigaz vs. HK Electric Investments | Gaztransport Technigaz vs. MEDICAL FACILITIES NEW |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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