Correlation Between ARDAGH METAL and De Grey
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and De Grey 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 De Grey 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 De Grey Mining, you can compare the effects of market volatilities on ARDAGH METAL and De Grey 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 De Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and De Grey.
Diversification Opportunities for ARDAGH METAL and De Grey
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ARDAGH and DGD is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and De Grey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Grey Mining 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 De Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Grey Mining has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and De Grey go up and down completely randomly.
Pair Corralation between ARDAGH METAL and De Grey
Assuming the 90 days horizon ARDAGH METAL is expected to generate 3.74 times less return on investment than De Grey. In addition to that, ARDAGH METAL is 1.16 times more volatile than De Grey Mining. It trades about 0.01 of its total potential returns per unit of risk. De Grey Mining is currently generating about 0.02 per unit of volatility. If you would invest 97.00 in De Grey Mining on October 11, 2024 and sell it today you would earn a total of 13.00 from holding De Grey Mining or generate 13.4% 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. De Grey Mining
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| De Grey Mining |
ARDAGH METAL and De Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and De Grey
The main advantage of trading using opposite ARDAGH METAL and De Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, De Grey 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 De Grey will offset losses from the drop in De Grey's long position.| ARDAGH METAL vs. THORNEY TECHS LTD | ARDAGH METAL vs. SOFI TECHNOLOGIES | ARDAGH METAL vs. DELTA AIR LINES | ARDAGH METAL vs. Playtech plc |
| De Grey vs. CarsalesCom | De Grey vs. KENEDIX OFFICE INV | De Grey vs. ADRIATIC METALS LS 013355 | De Grey vs. ARDAGH METAL PACDL 0001 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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