Correlation Between GWILLI FOOD and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD 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 GWILLI FOOD and ARDAGH METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on GWILLI FOOD 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 GWILLI FOOD with a short position of ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and ARDAGH METAL.
Diversification Opportunities for GWILLI FOOD and ARDAGH METAL
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GWILLI and ARDAGH is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD 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 GWILLI FOOD 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 GWILLI FOOD 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 GWILLI FOOD i.e., GWILLI FOOD and ARDAGH METAL go up and down completely randomly.
Pair Corralation between GWILLI FOOD and ARDAGH METAL
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 0.9 times more return on investment than ARDAGH METAL. However, GWILLI FOOD is 1.11 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 0.01 per unit of risk. If you would invest 1,014 in GWILLI FOOD on October 27, 2024 and sell it today you would earn a total of 546.00 from holding GWILLI FOOD or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GWILLI FOOD vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| GWILLI FOOD |
| ARDAGH METAL PACDL |
GWILLI FOOD and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and ARDAGH METAL
The main advantage of trading using opposite GWILLI FOOD and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD 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.| GWILLI FOOD vs. Harmony Gold Mining | GWILLI FOOD vs. H2O Retailing | GWILLI FOOD vs. MARKET VECTR RETAIL | GWILLI FOOD vs. MINCO SILVER |
| ARDAGH METAL vs. Amcor plc | ARDAGH METAL vs. Amcor plc | ARDAGH METAL vs. Packaging of | ARDAGH METAL vs. Crown Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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