Correlation Between ARDAGH METAL and Highlight Communications
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and Highlight Communications 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 Highlight Communications 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 Highlight Communications AG, you can compare the effects of market volatilities on ARDAGH METAL and Highlight Communications 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 Highlight Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and Highlight Communications.
Diversification Opportunities for ARDAGH METAL and Highlight Communications
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ARDAGH and Highlight is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and Highlight Communications AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highlight Communications 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 Highlight Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highlight Communications has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and Highlight Communications go up and down completely randomly.
Pair Corralation between ARDAGH METAL and Highlight Communications
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to generate 1.33 times more return on investment than Highlight Communications. However, ARDAGH METAL is 1.33 times more volatile than Highlight Communications AG. It trades about 0.0 of its potential returns per unit of risk. Highlight Communications AG is currently generating about -0.05 per unit of risk. If you would invest 384.00 in ARDAGH METAL PACDL 0001 on October 18, 2024 and sell it today you would lose (122.00) from holding ARDAGH METAL PACDL 0001 or give up 31.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. Highlight Communications AG
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| Highlight Communications |
ARDAGH METAL and Highlight Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and Highlight Communications
The main advantage of trading using opposite ARDAGH METAL and Highlight Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, Highlight Communications 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 Highlight Communications will offset losses from the drop in Highlight Communications' long position.| ARDAGH METAL vs. PLAY2CHILL SA ZY | ARDAGH METAL vs. Aristocrat Leisure Limited | ARDAGH METAL vs. SEALED AIR | ARDAGH METAL vs. Columbia Sportswear |
| Highlight Communications vs. LG Display Co | Highlight Communications vs. FIREWEED METALS P | Highlight Communications vs. ARDAGH METAL PACDL 0001 | Highlight Communications vs. InPlay Oil Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |