Correlation Between AptarGroup and SCG PACKAGING
Can any of the company-specific risk be diversified away by investing in both AptarGroup and SCG PACKAGING 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 SCG PACKAGING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and SCG PACKAGING FGN , you can compare the effects of market volatilities on AptarGroup and SCG PACKAGING 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 SCG PACKAGING. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and SCG PACKAGING.
Diversification Opportunities for AptarGroup and SCG PACKAGING
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AptarGroup and SCG is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and SCG PACKAGING FGN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCG PACKAGING FGN 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 SCG PACKAGING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCG PACKAGING FGN has no effect on the direction of AptarGroup i.e., AptarGroup and SCG PACKAGING go up and down completely randomly.
Pair Corralation between AptarGroup and SCG PACKAGING
Assuming the 90 days horizon AptarGroup is expected to generate 2.04 times less return on investment than SCG PACKAGING. But when comparing it to its historical volatility, AptarGroup is 4.77 times less risky than SCG PACKAGING. It trades about 0.12 of its potential returns per unit of risk. SCG PACKAGING FGN is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 38.00 in SCG PACKAGING FGN on September 2, 2024 and sell it today you would earn a total of 20.00 from holding SCG PACKAGING FGN or generate 52.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptarGroup vs. SCG PACKAGING FGN
Performance |
| Timeline |
| AptarGroup |
| SCG PACKAGING FGN |
AptarGroup and SCG PACKAGING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and SCG PACKAGING
The main advantage of trading using opposite AptarGroup and SCG PACKAGING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, SCG PACKAGING 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 SCG PACKAGING will offset losses from the drop in SCG PACKAGING's long position.| AptarGroup vs. ScanSource | AptarGroup vs. BW OFFSHORE LTD | AptarGroup vs. AOI Electronics Co | AptarGroup vs. KIMBALL ELECTRONICS |
| SCG PACKAGING vs. Packaging of | SCG PACKAGING vs. Smurfit Kappa Group | SCG PACKAGING vs. Superior Plus Corp | SCG PACKAGING vs. Origin Agritech |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |