Correlation Between ARDAGH METAL and CLEMONDO GROUP
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and CLEMONDO GROUP 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 CLEMONDO GROUP 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 CLEMONDO GROUP AB, you can compare the effects of market volatilities on ARDAGH METAL and CLEMONDO GROUP 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 CLEMONDO GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and CLEMONDO GROUP.
Diversification Opportunities for ARDAGH METAL and CLEMONDO GROUP
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ARDAGH and CLEMONDO is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and CLEMONDO GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLEMONDO GROUP AB 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 CLEMONDO GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLEMONDO GROUP AB has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and CLEMONDO GROUP go up and down completely randomly.
Pair Corralation between ARDAGH METAL and CLEMONDO GROUP
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the CLEMONDO GROUP. But the stock apears to be less risky and, when comparing its historical volatility, ARDAGH METAL PACDL 0001 is 3.75 times less risky than CLEMONDO GROUP. The stock trades about -0.32 of its potential returns per unit of risk. The CLEMONDO GROUP AB is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 41.00 in CLEMONDO GROUP AB on October 11, 2024 and sell it today you would earn a total of 15.00 from holding CLEMONDO GROUP AB or generate 36.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. CLEMONDO GROUP AB
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| CLEMONDO GROUP AB |
ARDAGH METAL and CLEMONDO GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and CLEMONDO GROUP
The main advantage of trading using opposite ARDAGH METAL and CLEMONDO GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, CLEMONDO GROUP 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 CLEMONDO GROUP will offset losses from the drop in CLEMONDO GROUP'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 |
| CLEMONDO GROUP vs. Warner Music Group | CLEMONDO GROUP vs. Forsys Metals Corp | CLEMONDO GROUP vs. ARDAGH METAL PACDL 0001 | CLEMONDO GROUP vs. Zoom Video Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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