Correlation Between NEWELL RUBBERMAID and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both NEWELL RUBBERMAID 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 NEWELL RUBBERMAID and ARDAGH METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEWELL RUBBERMAID and ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on NEWELL RUBBERMAID 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 NEWELL RUBBERMAID with a short position of ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWELL RUBBERMAID and ARDAGH METAL.
Diversification Opportunities for NEWELL RUBBERMAID and ARDAGH METAL
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NEWELL and ARDAGH is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding NEWELL RUBBERMAID 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 NEWELL RUBBERMAID 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 NEWELL RUBBERMAID 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 NEWELL RUBBERMAID i.e., NEWELL RUBBERMAID and ARDAGH METAL go up and down completely randomly.
Pair Corralation between NEWELL RUBBERMAID and ARDAGH METAL
Assuming the 90 days trading horizon NEWELL RUBBERMAID is expected to generate 0.57 times more return on investment than ARDAGH METAL. However, NEWELL RUBBERMAID is 1.75 times less risky than ARDAGH METAL. It trades about -0.49 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about -0.33 per unit of risk. If you would invest 1,097 in NEWELL RUBBERMAID on October 12, 2024 and sell it today you would lose (150.00) from holding NEWELL RUBBERMAID or give up 13.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
NEWELL RUBBERMAID vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| NEWELL RUBBERMAID |
| ARDAGH METAL PACDL |
NEWELL RUBBERMAID and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEWELL RUBBERMAID and ARDAGH METAL
The main advantage of trading using opposite NEWELL RUBBERMAID and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWELL RUBBERMAID 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.| NEWELL RUBBERMAID vs. MCEWEN MINING INC | NEWELL RUBBERMAID vs. Addtech AB | NEWELL RUBBERMAID vs. Sunny Optical Technology | NEWELL RUBBERMAID vs. THORNEY TECHS LTD |
| ARDAGH METAL vs. Goodyear Tire Rubber | ARDAGH METAL vs. NAGOYA RAILROAD | ARDAGH METAL vs. NEWELL RUBBERMAID | ARDAGH METAL vs. Applied Materials |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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