Correlation Between Ryanair Holdings and ARDAGH METAL

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

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

Diversification Opportunities for Ryanair Holdings and ARDAGH METAL

0.88

Correlation Coefficient

Ryanair Holdings  ARDAGH METAL

Very poor diversification

The 3 months correlation between Ryanair and ARDAGH is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ryanair Holdings plc and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL and Ryanair Holdings 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 Ryanair Holdings plc are associated (or correlated) with ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of Ryanair Holdings i.e., Ryanair Holdings and ARDAGH METAL go up and down completely randomly.

Pair Corralation between Ryanair Holdings and ARDAGH METAL

Assuming the 90 days trading horizon Ryanair Holdings is expected to generate 1.85 times less return on investment than ARDAGH METAL. But when comparing it to its historical volatility, Ryanair Holdings plc is 1.15 times less risky than ARDAGH METAL. It trades about 0.08 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  312.00  in ARDAGH METAL PACDL 0001 on April 4, 2025 and sell it today you would earn a total of  44.00  from holding ARDAGH METAL PACDL 0001 or generate 14.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	97.73%
Values	Daily Returns

Ryanair Holdings plc  vs.  ARDAGH METAL PACDL 0001

Ryanair Holdings plc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ryanair Holdings plc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Ryanair Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

ARDAGH METAL PACDL

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ARDAGH METAL PACDL 0001 are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ARDAGH METAL reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ryanair Holdings and ARDAGH METAL

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

The idea behind Ryanair Holdings plc and ARDAGH METAL PACDL 0001 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.