Correlation Between ARDAGH METAL and Sekisui Chemical
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and Sekisui Chemical 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 Sekisui Chemical 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 Sekisui Chemical Co, you can compare the effects of market volatilities on ARDAGH METAL and Sekisui Chemical 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 Sekisui Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and Sekisui Chemical.
Diversification Opportunities for ARDAGH METAL and Sekisui Chemical
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between ARDAGH and Sekisui is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and Sekisui Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekisui Chemical 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 Sekisui Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekisui Chemical has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and Sekisui Chemical go up and down completely randomly.
Pair Corralation between ARDAGH METAL and Sekisui Chemical
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to generate 2.25 times more return on investment than Sekisui Chemical. However, ARDAGH METAL is 2.25 times more volatile than Sekisui Chemical Co. It trades about 0.02 of its potential returns per unit of risk. Sekisui Chemical Co is currently generating about 0.03 per unit of risk. If you would invest 340.00 in ARDAGH METAL PACDL 0001 on September 3, 2024 and sell it today you would earn a total of 0.00 from holding ARDAGH METAL PACDL 0001 or generate 0.0% 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. Sekisui Chemical Co
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| Sekisui Chemical |
ARDAGH METAL and Sekisui Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and Sekisui Chemical
The main advantage of trading using opposite ARDAGH METAL and Sekisui Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, Sekisui Chemical 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 Sekisui Chemical will offset losses from the drop in Sekisui Chemical's long position.| ARDAGH METAL vs. AptarGroup | ARDAGH METAL vs. Superior Plus Corp | ARDAGH METAL vs. NMI Holdings | ARDAGH METAL vs. Origin Agritech |
| Sekisui Chemical vs. Strategic Investments AS | Sekisui Chemical vs. Japan Asia Investment | Sekisui Chemical vs. Virtus Investment Partners | Sekisui Chemical vs. United Internet AG |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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