Correlation Between Greif Bros and Ardagh Metal

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

By analyzing existing cross correlation between Greif Bros and Ardagh Metal Packaging, you can compare the effects of market volatilities on Greif Bros 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 Greif Bros with a short position of Ardagh Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif Bros and Ardagh Metal.

Diversification Opportunities for Greif Bros and Ardagh Metal

0.34

Correlation Coefficient

Greif Bros  Ardagh Metal

Weak diversification

The 3 months correlation between Greif and Ardagh is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Greif Bros 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 Greif Bros 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 Greif Bros 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 Greif Bros i.e., Greif Bros and Ardagh Metal go up and down completely randomly.

Pair Corralation between Greif Bros and Ardagh Metal

Considering the 90-day investment horizon Greif Bros is expected to generate 9.31 times less return on investment than Ardagh Metal. But when comparing it to its historical volatility, Greif Bros is 1.49 times less risky than Ardagh Metal. It trades about 0.01 of its potential returns per unit of risk. Ardagh Metal Packaging is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  250.00  in Ardagh Metal Packaging on July 17, 2025 and sell it today you would earn a total of  122.00  from holding Ardagh Metal Packaging or generate 48.8% return on investment over 90 days.

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

Greif Bros  vs.  Ardagh Metal Packaging

Greif Bros

Risk-Adjusted Performance

Weakest

Over the last 90 days Greif Bros has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Ardagh Metal Packaging

Risk-Adjusted Performance

Weakest

Over the last 90 days Ardagh Metal Packaging has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Greif Bros and Ardagh Metal

The main advantage of trading using opposite Greif Bros and Ardagh Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greif Bros 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 Greif Bros and Ardagh Metal Packaging 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.