Correlation Between AptarGroup and Amcor Plc
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Amcor Plc 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 AptarGroup and Amcor Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Amcor plc, you can compare the effects of market volatilities on AptarGroup and Amcor Plc 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 AptarGroup with a short position of Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Amcor Plc.
Diversification Opportunities for AptarGroup and Amcor Plc
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between AptarGroup and Amcor is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Amcor plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor plc and AptarGroup 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 AptarGroup are associated (or correlated) with Amcor Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor plc has no effect on the direction of AptarGroup i.e., AptarGroup and Amcor Plc go up and down completely randomly.
Pair Corralation between AptarGroup and Amcor Plc
Assuming the 90 days horizon AptarGroup is expected to under-perform the Amcor Plc. But the stock apears to be less risky and, when comparing its historical volatility, AptarGroup is 2.49 times less risky than Amcor Plc. The stock trades about -0.03 of its potential returns per unit of risk. The Amcor plc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 927.00 in Amcor plc on September 12, 2024 and sell it today you would earn a total of 39.00 from holding Amcor plc or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AptarGroup vs. Amcor plc
Performance |
| Timeline |
| AptarGroup |
| Amcor plc |
AptarGroup and Amcor Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and Amcor Plc
The main advantage of trading using opposite AptarGroup and Amcor Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Amcor Plc 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 Amcor Plc will offset losses from the drop in Amcor Plc's long position.| AptarGroup vs. Packaging of | AptarGroup vs. Graphic Packaging Holding | AptarGroup vs. Superior Plus Corp | AptarGroup vs. SIVERS SEMICONDUCTORS AB |
| Amcor Plc vs. Packaging of | Amcor Plc vs. Graphic Packaging Holding | Amcor Plc vs. Superior Plus Corp | Amcor Plc vs. SIVERS SEMICONDUCTORS AB |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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