Correlation Between NYSE Composite and Ardagh Group
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Ardagh Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Ardagh Group SA, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Ardagh Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Ardagh Group.
Diversification Opportunities for NYSE Composite and Ardagh Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Ardagh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Ardagh Group go up and down completely randomly.
Pair Corralation between NYSE Composite and Ardagh Group
If you would invest 1,508,153 in NYSE Composite on September 12, 2024 and sell it today you would earn a total of 480,037 from holding NYSE Composite or generate 31.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NYSE Composite vs. Ardagh Group SA
Performance |
| Timeline |
NYSE Composite and Ardagh Group Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Ardagh Group SA
Pair trading matchups for Ardagh Group
Pair Trading with NYSE Composite and Ardagh Group
The main advantage of trading using opposite NYSE Composite and Ardagh Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Teleflex Incorporated | NYSE Composite vs. Victorias Secret Co | NYSE Composite vs. Under Armour C | NYSE Composite vs. Steven Madden |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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