Correlation Between ARDAGH METAL and CEOTRONICS (CEKSG)
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) 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 CEOTRONICS, you can compare the effects of market volatilities on ARDAGH METAL and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and CEOTRONICS (CEKSG).
Diversification Opportunities for ARDAGH METAL and CEOTRONICS (CEKSG)
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ARDAGH and CEOTRONICS is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS (CEKSG) has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and CEOTRONICS (CEKSG) go up and down completely randomly.
Pair Corralation between ARDAGH METAL and CEOTRONICS (CEKSG)
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the CEOTRONICS (CEKSG). In addition to that, ARDAGH METAL is 1.09 times more volatile than CEOTRONICS. It trades about -0.32 of its total potential returns per unit of risk. CEOTRONICS is currently generating about -0.21 per unit of volatility. If you would invest 660.00 in CEOTRONICS on October 11, 2024 and sell it today you would lose (65.00) from holding CEOTRONICS or give up 9.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. CEOTRONICS
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| CEOTRONICS (CEKSG) |
ARDAGH METAL and CEOTRONICS (CEKSG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and CEOTRONICS (CEKSG)
The main advantage of trading using opposite ARDAGH METAL and CEOTRONICS (CEKSG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) will offset losses from the drop in CEOTRONICS (CEKSG)'s long position.| ARDAGH METAL vs. Harmony Gold Mining | ARDAGH METAL vs. Cal Maine Foods | ARDAGH METAL vs. SENECA FOODS A | ARDAGH METAL vs. Eurasia Mining Plc |
| CEOTRONICS (CEKSG) vs. MAGNUM MINING EXP | CEOTRONICS (CEKSG) vs. ADRIATIC METALS LS 013355 | CEOTRONICS (CEKSG) vs. ARDAGH METAL PACDL 0001 | CEOTRONICS (CEKSG) vs. Perseus Mining Limited |
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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