Correlation Between ARDAGH METAL and Carlsberg A/S
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and Carlsberg A/S 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 Carlsberg A/S 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 Carlsberg AS, you can compare the effects of market volatilities on ARDAGH METAL and Carlsberg A/S 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 Carlsberg A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and Carlsberg A/S.
Diversification Opportunities for ARDAGH METAL and Carlsberg A/S
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ARDAGH and Carlsberg is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg A/S 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 Carlsberg A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg A/S has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and Carlsberg A/S go up and down completely randomly.
Pair Corralation between ARDAGH METAL and Carlsberg A/S
Assuming the 90 days horizon ARDAGH METAL is expected to generate 1.56 times less return on investment than Carlsberg A/S. In addition to that, ARDAGH METAL is 1.78 times more volatile than Carlsberg AS. It trades about 0.05 of its total potential returns per unit of risk. Carlsberg AS is currently generating about 0.13 per unit of volatility. If you would invest 11,000 in Carlsberg AS on December 3, 2024 and sell it today you would earn a total of 1,400 from holding Carlsberg AS or generate 12.73% 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. Carlsberg AS
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| Carlsberg A/S |
ARDAGH METAL and Carlsberg A/S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and Carlsberg A/S
The main advantage of trading using opposite ARDAGH METAL and Carlsberg A/S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, Carlsberg A/S 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 Carlsberg A/S will offset losses from the drop in Carlsberg A/S's long position.| ARDAGH METAL vs. BROADSTNET LEADL 00025 | ARDAGH METAL vs. KAUFMAN ET BROAD | ARDAGH METAL vs. BROADPEAK SA EO | ARDAGH METAL vs. EMBARK EDUCATION LTD |
| Carlsberg A/S vs. US Foods Holding | Carlsberg A/S vs. PATTIES FOODS | Carlsberg A/S vs. SALESFORCE INC CDR | Carlsberg A/S vs. Salesforce |
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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