Correlation Between ARDAGH METAL and Intel

Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and Intel 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 ARDAGH METAL and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ARDAGH METAL PACDL 0001 and Intel, you can compare the effects of market volatilities on ARDAGH METAL and Intel 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 METAL with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and Intel.

Diversification Opportunities for ARDAGH METAL and Intel

0.59

Correlation Coefficient

ARDAGH METAL  Intel

Very weak diversification

The 3 months correlation between ARDAGH and Intel is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and ARDAGH METAL 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 METAL PACDL 0001 are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and Intel go up and down completely randomly.

Pair Corralation between ARDAGH METAL and Intel

Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the Intel. In addition to that, ARDAGH METAL is 1.15 times more volatile than Intel. It trades about -0.07 of its total potential returns per unit of risk. Intel is currently generating about -0.05 per unit of volatility. If you would invest  2,101  in Intel on October 15, 2024 and sell it today you would lose (251.00) from holding Intel or give up 11.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ARDAGH METAL PACDL 0001  vs.  Intel

ARDAGH METAL PACDL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ARDAGH METAL PACDL 0001 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with ARDAGH METAL and Intel

The main advantage of trading using opposite ARDAGH METAL and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.

The idea behind ARDAGH METAL PACDL 0001 and Intel 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.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .