Correlation Between ARDAGH METAL and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and GRIFFIN MINING 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 GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on ARDAGH METAL and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and GRIFFIN MINING.
Diversification Opportunities for ARDAGH METAL and GRIFFIN MINING
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ARDAGH and GRIFFIN is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between ARDAGH METAL and GRIFFIN MINING
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the GRIFFIN MINING. In addition to that, ARDAGH METAL is 1.71 times more volatile than GRIFFIN MINING LTD. It trades about -0.01 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.07 per unit of volatility. If you would invest 97.00 in GRIFFIN MINING LTD on November 9, 2024 and sell it today you would earn a total of 91.00 from holding GRIFFIN MINING LTD or generate 93.81% 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. GRIFFIN MINING LTD
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| GRIFFIN MINING LTD |
ARDAGH METAL and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and GRIFFIN MINING
The main advantage of trading using opposite ARDAGH METAL and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| ARDAGH METAL vs. CN MODERN DAIRY | ARDAGH METAL vs. Tyson Foods | ARDAGH METAL vs. INDOFOOD AGRI RES | ARDAGH METAL vs. PLANT VEDA FOODS |
| GRIFFIN MINING vs. Clean Energy Fuels | GRIFFIN MINING vs. Carnegie Clean Energy | GRIFFIN MINING vs. Eidesvik Offshore ASA | GRIFFIN MINING vs. ANGLO ASIAN MINING |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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