Correlation Between Merck and Ardagh
Specify exactly 2 symbols:
By analyzing existing cross correlation between Merck Company and Ardagh Packaging Finance, you can compare the effects of market volatilities on Merck and Ardagh 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 Merck with a short position of Ardagh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and Ardagh.
Diversification Opportunities for Merck and Ardagh
Very good diversification
The 3 months correlation between Merck and Ardagh is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and Ardagh Packaging Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardagh Packaging Finance and Merck 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 Merck Company are associated (or correlated) with Ardagh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardagh Packaging Finance has no effect on the direction of Merck i.e., Merck and Ardagh go up and down completely randomly.
Pair Corralation between Merck and Ardagh
Considering the 90-day investment horizon Merck Company is expected to under-perform the Ardagh. But the stock apears to be less risky and, when comparing its historical volatility, Merck Company is 6.66 times less risky than Ardagh. The stock trades about -0.1 of its potential returns per unit of risk. The Ardagh Packaging Finance is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 6,150 in Ardagh Packaging Finance on August 28, 2024 and sell it today you would earn a total of 1,450 from holding Ardagh Packaging Finance or generate 23.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Merck Company vs. Ardagh Packaging Finance
Performance |
| Timeline |
| Merck Company |
| Ardagh Packaging Finance |
Merck and Ardagh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and Ardagh
The main advantage of trading using opposite Merck and Ardagh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, Ardagh 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 will offset losses from the drop in Ardagh's long position.| Merck vs. Capricor Therapeutics | Merck vs. Soleno Therapeutics | Merck vs. Bio Path Holdings | Merck vs. Moleculin Biotech |
| Ardagh vs. The Coca Cola | Ardagh vs. JPMorgan Chase Co | Ardagh vs. Dupont De Nemours | Ardagh vs. Alcoa Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |