Correlation Between HNI Corp and Ardagh Group
Can any of the company-specific risk be diversified away by investing in both HNI Corp and Ardagh Group 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 HNI Corp and Ardagh Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HNI Corp and Ardagh Group SA, you can compare the effects of market volatilities on HNI Corp and Ardagh Group 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 HNI Corp with a short position of Ardagh Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and Ardagh Group.
Diversification Opportunities for HNI Corp and Ardagh Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HNI and Ardagh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Ardagh Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardagh Group SA and HNI Corp 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 HNI Corp are associated (or correlated) with Ardagh Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardagh Group SA has no effect on the direction of HNI Corp i.e., HNI Corp and Ardagh Group go up and down completely randomly.
Pair Corralation between HNI Corp and Ardagh Group
If you would invest 3,008 in HNI Corp on September 12, 2024 and sell it today you would earn a total of 2,514 from holding HNI Corp or generate 83.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
HNI Corp vs. Ardagh Group SA
Performance |
| Timeline |
| HNI Corp |
| Ardagh Group SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HNI Corp and Ardagh Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNI Corp and Ardagh Group
The main advantage of trading using opposite HNI Corp and Ardagh Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp position performs unexpectedly, Ardagh Group 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 Group will offset losses from the drop in Ardagh Group's long position.The idea behind HNI Corp and Ardagh Group SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ardagh Group vs. Jacobs Solutions | Ardagh Group vs. HNI Corp | Ardagh Group vs. Sphere Entertainment Co | Ardagh Group vs. Mativ 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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