Correlation Between BANK HANDLOWY and AptarGroup
Can any of the company-specific risk be diversified away by investing in both BANK HANDLOWY and AptarGroup 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 BANK HANDLOWY and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK HANDLOWY and AptarGroup, you can compare the effects of market volatilities on BANK HANDLOWY and AptarGroup 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 BANK HANDLOWY with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK HANDLOWY and AptarGroup.
Diversification Opportunities for BANK HANDLOWY and AptarGroup
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and AptarGroup is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding BANK HANDLOWY and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and BANK HANDLOWY 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 BANK HANDLOWY are associated (or correlated) with AptarGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptarGroup has no effect on the direction of BANK HANDLOWY i.e., BANK HANDLOWY and AptarGroup go up and down completely randomly.
Pair Corralation between BANK HANDLOWY and AptarGroup
Assuming the 90 days trading horizon BANK HANDLOWY is expected to under-perform the AptarGroup. But the stock apears to be less risky and, when comparing its historical volatility, BANK HANDLOWY is 3.43 times less risky than AptarGroup. The stock trades about -0.35 of its potential returns per unit of risk. The AptarGroup is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 15,680 in AptarGroup on August 29, 2024 and sell it today you would earn a total of 680.00 from holding AptarGroup or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BANK HANDLOWY vs. AptarGroup
Performance |
| Timeline |
| BANK HANDLOWY |
| AptarGroup |
BANK HANDLOWY and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK HANDLOWY and AptarGroup
The main advantage of trading using opposite BANK HANDLOWY and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK HANDLOWY position performs unexpectedly, AptarGroup 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 AptarGroup will offset losses from the drop in AptarGroup's long position.| BANK HANDLOWY vs. DEVRY EDUCATION GRP | BANK HANDLOWY vs. Hanison Construction Holdings | BANK HANDLOWY vs. Titan Machinery | BANK HANDLOWY vs. Federal Agricultural Mortgage |
| AptarGroup vs. Jacquet Metal Service | AptarGroup vs. Check Point Software | AptarGroup vs. Computer And Technologies | AptarGroup vs. Amkor Technology |
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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