Correlation Between Good Natured and Ardagh Metal
Can any of the company-specific risk be diversified away by investing in both Good Natured 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 Good Natured and Ardagh Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between good natured Products and Ardagh Metal Packaging, you can compare the effects of market volatilities on Good Natured 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 Good Natured with a short position of Ardagh Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Natured and Ardagh Metal.
Diversification Opportunities for Good Natured and Ardagh Metal
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Good and Ardagh is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding good natured Products and Ardagh Metal Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardagh Metal Packaging and Good Natured 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 good natured Products 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 Packaging has no effect on the direction of Good Natured i.e., Good Natured and Ardagh Metal go up and down completely randomly.
Pair Corralation between Good Natured and Ardagh Metal
Assuming the 90 days horizon good natured Products is expected to under-perform the Ardagh Metal. In addition to that, Good Natured is 5.52 times more volatile than Ardagh Metal Packaging. It trades about -0.01 of its total potential returns per unit of risk. Ardagh Metal Packaging is currently generating about 0.03 per unit of volatility. If you would invest 325.00 in Ardagh Metal Packaging on August 29, 2024 and sell it today you would earn a total of 45.00 from holding Ardagh Metal Packaging or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
good natured Products vs. Ardagh Metal Packaging
Performance |
| Timeline |
| good natured Products |
| Ardagh Metal Packaging |
Good Natured and Ardagh Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Good Natured and Ardagh Metal
The main advantage of trading using opposite Good Natured and Ardagh Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Good Natured 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.| Good Natured vs. Imaflex | Good Natured vs. Karat Packaging | Good Natured vs. DSS Inc | Good Natured vs. Myers Industries |
| Ardagh Metal vs. Crown Holdings | Ardagh Metal vs. Amcor PLC | Ardagh Metal vs. Avery Dennison Corp | Ardagh Metal vs. Packaging Corp of |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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