Correlation Between High Tech and Ardagh Metal
Can any of the company-specific risk be diversified away by investing in both High Tech 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 High Tech and Ardagh Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Tech Metals and Ardagh Metal Packaging, you can compare the effects of market volatilities on High Tech 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 High Tech with a short position of Ardagh Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Tech and Ardagh Metal.
Diversification Opportunities for High Tech and Ardagh Metal
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between High and Ardagh is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding High Tech Metals and Ardagh Metal Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardagh Metal Packaging and High Tech 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 High Tech Metals 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 Packaging has no effect on the direction of High Tech i.e., High Tech and Ardagh Metal go up and down completely randomly.
Pair Corralation between High Tech and Ardagh Metal
Assuming the 90 days trading horizon High Tech Metals is expected to generate 1.29 times more return on investment than Ardagh Metal. However, High Tech is 1.29 times more volatile than Ardagh Metal Packaging. It trades about 0.14 of its potential returns per unit of risk. Ardagh Metal Packaging is currently generating about -0.09 per unit of risk. If you would invest 21.00 in High Tech Metals on July 18, 2025 and sell it today you would earn a total of 7.00 from holding High Tech Metals or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
High Tech Metals vs. Ardagh Metal Packaging
Performance |
| Timeline |
| High Tech Metals |
| Ardagh Metal Packaging |
High Tech and Ardagh Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Tech and Ardagh Metal
The main advantage of trading using opposite High Tech and Ardagh Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Tech 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.| High Tech vs. Northern Star Resources | High Tech vs. Evolution Mining | High Tech vs. Alcoa | High Tech vs. Bluescope Steel |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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