Correlation Between ARDAGH METAL and Sunny Optical
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and Sunny Optical 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 Sunny Optical 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 Sunny Optical Technology, you can compare the effects of market volatilities on ARDAGH METAL and Sunny Optical 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 Sunny Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and Sunny Optical.
Diversification Opportunities for ARDAGH METAL and Sunny Optical
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ARDAGH and Sunny is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and Sunny Optical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Optical Technology 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 Sunny Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Optical Technology has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and Sunny Optical go up and down completely randomly.
Pair Corralation between ARDAGH METAL and Sunny Optical
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to generate 1.5 times more return on investment than Sunny Optical. However, ARDAGH METAL is 1.5 times more volatile than Sunny Optical Technology. It trades about -0.1 of its potential returns per unit of risk. Sunny Optical Technology is currently generating about -0.16 per unit of risk. If you would invest 286.00 in ARDAGH METAL PACDL 0001 on October 22, 2024 and sell it today you would lose (22.00) from holding ARDAGH METAL PACDL 0001 or give up 7.69% 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. Sunny Optical Technology
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| Sunny Optical Technology |
ARDAGH METAL and Sunny Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and Sunny Optical
The main advantage of trading using opposite ARDAGH METAL and Sunny Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, Sunny Optical 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 Sunny Optical will offset losses from the drop in Sunny Optical's long position.| ARDAGH METAL vs. CeoTronics AG | ARDAGH METAL vs. Brockhaus Capital Management | ARDAGH METAL vs. CHRYSALIS INVESTMENTS LTD | ARDAGH METAL vs. CEOTRONICS |
| Sunny Optical vs. ARDAGH METAL PACDL 0001 | Sunny Optical vs. URBAN OUTFITTERS | Sunny Optical vs. CVW CLEANTECH INC | Sunny Optical vs. IMPERIAL TOBACCO |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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