Correlation Between Ardagh and Dow Jones
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By analyzing existing cross correlation between Ardagh Packaging Finance and Dow Jones Industrial, you can compare the effects of market volatilities on Ardagh and Dow Jones 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 Ardagh with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ardagh and Dow Jones.
Diversification Opportunities for Ardagh and Dow Jones
Pay attention - limited upside
The 3 months correlation between Ardagh and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ardagh Packaging Finance and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Ardagh 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 Ardagh Packaging Finance are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Ardagh i.e., Ardagh and Dow Jones go up and down completely randomly.
Pair Corralation between Ardagh and Dow Jones
If you would invest 4,231,300 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 242,357 from holding Dow Jones Industrial or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ardagh Packaging Finance vs. Dow Jones Industrial
Performance |
| Timeline |
Ardagh and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Ardagh Packaging Finance
Pair trading matchups for Ardagh
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Ardagh and Dow Jones
The main advantage of trading using opposite Ardagh and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ardagh position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.The idea behind Ardagh Packaging Finance and Dow Jones Industrial 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.| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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