Correlation Between CeoTronics and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both CeoTronics and ARDAGH METAL 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 CeoTronics and ARDAGH METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CeoTronics AG and ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on CeoTronics and ARDAGH METAL 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 CeoTronics with a short position of ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CeoTronics and ARDAGH METAL.
Diversification Opportunities for CeoTronics and ARDAGH METAL
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CeoTronics and ARDAGH is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CeoTronics AG and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL and CeoTronics 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 CeoTronics AG are associated (or correlated) with ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of CeoTronics i.e., CeoTronics and ARDAGH METAL go up and down completely randomly.
Pair Corralation between CeoTronics and ARDAGH METAL
Assuming the 90 days trading horizon CeoTronics AG is expected to generate 0.28 times more return on investment than ARDAGH METAL. However, CeoTronics AG is 3.55 times less risky than ARDAGH METAL. It trades about 0.23 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about -0.1 per unit of risk. If you would invest 590.00 in CeoTronics AG on October 22, 2024 and sell it today you would earn a total of 25.00 from holding CeoTronics AG or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CeoTronics AG vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| CeoTronics AG |
| ARDAGH METAL PACDL |
CeoTronics and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CeoTronics and ARDAGH METAL
The main advantage of trading using opposite CeoTronics and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CeoTronics position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| CeoTronics vs. SANOK RUBBER ZY | CeoTronics vs. HK Electric Investments | CeoTronics vs. Heidelberg Materials AG | CeoTronics vs. Sumitomo Rubber Industries |
| ARDAGH METAL vs. CeoTronics AG | ARDAGH METAL vs. Brockhaus Capital Management | ARDAGH METAL vs. CHRYSALIS INVESTMENTS LTD | ARDAGH METAL vs. CEOTRONICS |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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