Correlation Between Argo Investments and Amcor PLC
Can any of the company-specific risk be diversified away by investing in both Argo Investments and Amcor PLC 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 Argo Investments and Amcor PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Investments and Amcor PLC, you can compare the effects of market volatilities on Argo Investments and Amcor PLC 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 Argo Investments with a short position of Amcor PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Investments and Amcor PLC.
Diversification Opportunities for Argo Investments and Amcor PLC
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Argo and Amcor is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Argo Investments and Amcor PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor PLC and Argo Investments 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 Argo Investments are associated (or correlated) with Amcor PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor PLC has no effect on the direction of Argo Investments i.e., Argo Investments and Amcor PLC go up and down completely randomly.
Pair Corralation between Argo Investments and Amcor PLC
Assuming the 90 days trading horizon Argo Investments is expected to generate 2.11 times less return on investment than Amcor PLC. But when comparing it to its historical volatility, Argo Investments is 1.97 times less risky than Amcor PLC. It trades about 0.05 of its potential returns per unit of risk. Amcor PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,380 in Amcor PLC on September 14, 2024 and sell it today you would earn a total of 193.00 from holding Amcor PLC or generate 13.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Argo Investments vs. Amcor PLC
Performance |
| Timeline |
| Argo Investments |
| Amcor PLC |
Argo Investments and Amcor PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Investments and Amcor PLC
The main advantage of trading using opposite Argo Investments and Amcor PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Investments position performs unexpectedly, Amcor PLC 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 Amcor PLC will offset losses from the drop in Amcor PLC's long position.| Argo Investments vs. Garda Diversified Ppty | Argo Investments vs. Catalyst Metals | Argo Investments vs. ACDC Metals | Argo Investments vs. BKI Investment |
| Amcor PLC vs. Insignia Financial | Amcor PLC vs. EP Financial Group | Amcor PLC vs. Kneomedia | Amcor PLC vs. oOhMedia |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |