Correlation Between ARDAGH METAL and AGRICULTBK HADR/25
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 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 AGRICULTBK HADR25 YC, you can compare the effects of market volatilities on ARDAGH METAL and AGRICULTBK HADR/25 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 AGRICULTBK HADR/25. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and AGRICULTBK HADR/25.
Diversification Opportunities for ARDAGH METAL and AGRICULTBK HADR/25
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ARDAGH and AGRICULTBK is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and AGRICULTBK HADR25 YC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTBK HADR/25 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 AGRICULTBK HADR/25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTBK HADR/25 has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and AGRICULTBK HADR/25 go up and down completely randomly.
Pair Corralation between ARDAGH METAL and AGRICULTBK HADR/25
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the AGRICULTBK HADR/25. In addition to that, ARDAGH METAL is 1.98 times more volatile than AGRICULTBK HADR25 YC. It trades about -0.11 of its total potential returns per unit of risk. AGRICULTBK HADR25 YC is currently generating about -0.03 per unit of volatility. If you would invest 1,300 in AGRICULTBK HADR25 YC on November 7, 2024 and sell it today you would lose (20.00) from holding AGRICULTBK HADR25 YC or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. AGRICULTBK HADR25 YC
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| AGRICULTBK HADR/25 |
ARDAGH METAL and AGRICULTBK HADR/25 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and AGRICULTBK HADR/25
The main advantage of trading using opposite ARDAGH METAL and AGRICULTBK HADR/25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 will offset losses from the drop in AGRICULTBK HADR/25's long position.| ARDAGH METAL vs. Merit Medical Systems | ARDAGH METAL vs. Regal Hotels International | ARDAGH METAL vs. UNIVMUSIC GRPADR050 | ARDAGH METAL vs. Genertec Universal Medical |
| AGRICULTBK HADR/25 vs. Eurasia Mining Plc | AGRICULTBK HADR/25 vs. ASURE SOFTWARE | AGRICULTBK HADR/25 vs. PKSHA TECHNOLOGY INC | AGRICULTBK HADR/25 vs. Firan Technology Group |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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