Correlation Between CSL and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both CSL 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 CSL and ARDAGH METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSL Limited and ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on CSL 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 CSL with a short position of ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and ARDAGH METAL.
Diversification Opportunities for CSL and ARDAGH METAL
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSL and ARDAGH is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CSL Limited 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 CSL 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 CSL Limited 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 CSL i.e., CSL and ARDAGH METAL go up and down completely randomly.
Pair Corralation between CSL and ARDAGH METAL
Assuming the 90 days horizon CSL Limited is expected to generate 0.4 times more return on investment than ARDAGH METAL. However, CSL Limited is 2.48 times less risky than ARDAGH METAL. It trades about -0.05 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about -0.06 per unit of risk. If you would invest 17,420 in CSL Limited on September 13, 2024 and sell it today you would lose (320.00) from holding CSL Limited or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSL Limited vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| CSL Limited |
| ARDAGH METAL PACDL |
CSL and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSL and ARDAGH METAL
The main advantage of trading using opposite CSL and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL 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.| CSL vs. Jacquet Metal Service | CSL vs. SLR Investment Corp | CSL vs. Virtus Investment Partners | CSL vs. Apollo Investment Corp |
| ARDAGH METAL vs. Packaging of | ARDAGH METAL vs. Graphic Packaging Holding | ARDAGH METAL vs. Superior Plus Corp | ARDAGH METAL vs. SIVERS SEMICONDUCTORS AB |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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