Correlation Between O I and Ardagh Group

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both O I 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 O I and Ardagh Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between O I Glass and Ardagh Group SA, you can compare the effects of market volatilities on O I 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 O I with a short position of Ardagh Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of O I and Ardagh Group.

Diversification Opportunities for O I and Ardagh Group

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between O I and Ardagh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding O-I Glass 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 O I 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 O I Glass 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 O I i.e., O I and Ardagh Group go up and down completely randomly.

Pair Corralation between O I and Ardagh Group

If you would invest (100.00) in Ardagh Group SA on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Ardagh Group SA or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

O-I Glass  vs.  Ardagh Group SA

 Performance 
       Timeline  
O-I Glass 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days O I Glass has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, O I is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
Ardagh Group SA 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Ardagh Group SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Ardagh Group is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

O I and Ardagh Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with O I and Ardagh Group

The main advantage of trading using opposite O I and Ardagh Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if O I 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.
The idea behind O I Glass and Ardagh Group SA 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.
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Complementary Tools

Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges