Correlation Between Ardagh Metal and Ball
Can any of the company-specific risk be diversified away by investing in both Ardagh Metal and Ball 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 Ball into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ardagh Metal Packaging and Ball Corporation, you can compare the effects of market volatilities on Ardagh Metal and Ball 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 Ball. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ardagh Metal and Ball.
Diversification Opportunities for Ardagh Metal and Ball
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ardagh and Ball is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ardagh Metal Packaging and Ball Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ball 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 Packaging are associated (or correlated) with Ball. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ball has no effect on the direction of Ardagh Metal i.e., Ardagh Metal and Ball go up and down completely randomly.
Pair Corralation between Ardagh Metal and Ball
Given the investment horizon of 90 days Ardagh Metal Packaging is expected to generate 1.86 times more return on investment than Ball. However, Ardagh Metal is 1.86 times more volatile than Ball Corporation. It trades about -0.06 of its potential returns per unit of risk. Ball Corporation is currently generating about -0.15 per unit of risk. If you would invest 444.00 in Ardagh Metal Packaging on July 7, 2025 and sell it today you would lose (52.00) from holding Ardagh Metal Packaging or give up 11.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ardagh Metal Packaging vs. Ball Corp.
Performance |
| Timeline |
| Ardagh Metal Packaging |
| Ball |
Ardagh Metal and Ball Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ardagh Metal and Ball
The main advantage of trading using opposite Ardagh Metal and Ball positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ardagh Metal position performs unexpectedly, Ball 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 Ball will offset losses from the drop in Ball's long position.| Ardagh Metal vs. Ball Corporation | Ardagh Metal vs. Myers Industries | Ardagh Metal vs. Reynolds Consumer Products | Ardagh Metal vs. Greif Bros |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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