Correlation Between NYSE Composite and Ardagh
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By analyzing existing cross correlation between NYSE Composite and Ardagh Holdings USA, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Ardagh. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Ardagh.
Diversification Opportunities for NYSE Composite and Ardagh
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Ardagh is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Ardagh Holdings USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardagh Holdings USA 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardagh Holdings USA has no effect on the direction of NYSE Composite i.e., NYSE Composite and Ardagh go up and down completely randomly.
Pair Corralation between NYSE Composite and Ardagh
Assuming the 90 days trading horizon NYSE Composite is expected to generate 39.18 times less return on investment than Ardagh. But when comparing it to its historical volatility, NYSE Composite is 86.39 times less risky than Ardagh. It trades about 0.11 of its potential returns per unit of risk. Ardagh Holdings USA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,448 in Ardagh Holdings USA on August 31, 2024 and sell it today you would lose (2,998) from holding Ardagh Holdings USA or give up 35.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.21% |
| Values | Daily Returns |
NYSE Composite vs. Ardagh Holdings USA
Performance |
| Timeline |
NYSE Composite and Ardagh Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Ardagh Holdings USA
Pair trading matchups for Ardagh
Pair Trading with NYSE Composite and Ardagh
The main advantage of trading using opposite NYSE Composite and Ardagh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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