Correlation Between ARDAGH METAL and Vestas Wind
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By analyzing existing cross correlation between ARDAGH METAL PACDL 0001 and Vestas Wind Systems, you can compare the effects of market volatilities on ARDAGH METAL and Vestas Wind 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 Vestas Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and Vestas Wind.
Diversification Opportunities for ARDAGH METAL and Vestas Wind
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ARDAGH and Vestas is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and Vestas Wind Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestas Wind Systems 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 Vestas Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestas Wind Systems has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and Vestas Wind go up and down completely randomly.
Pair Corralation between ARDAGH METAL and Vestas Wind
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to generate 1.56 times more return on investment than Vestas Wind. However, ARDAGH METAL is 1.56 times more volatile than Vestas Wind Systems. It trades about 0.02 of its potential returns per unit of risk. Vestas Wind Systems is currently generating about -0.04 per unit of risk. If you would invest 338.00 in ARDAGH METAL PACDL 0001 on September 12, 2024 and sell it today you would lose (20.00) from holding ARDAGH METAL PACDL 0001 or give up 5.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. Vestas Wind Systems
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| Vestas Wind Systems |
ARDAGH METAL and Vestas Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and Vestas Wind
The main advantage of trading using opposite ARDAGH METAL and Vestas Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, Vestas Wind 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 Vestas Wind will offset losses from the drop in Vestas Wind's long position.| ARDAGH METAL vs. Packaging of | ARDAGH METAL vs. Graphic Packaging Holding | ARDAGH METAL vs. Superior Plus Corp | ARDAGH METAL vs. SIVERS SEMICONDUCTORS AB |
| Vestas Wind vs. FIREWEED METALS P | Vestas Wind vs. ARDAGH METAL PACDL 0001 | Vestas Wind vs. Kaiser Aluminum | Vestas Wind vs. Jacquet Metal Service |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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