Correlation Between AptarGroup and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Jacquet 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 AptarGroup and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Jacquet Metal Service, you can compare the effects of market volatilities on AptarGroup and Jacquet 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 AptarGroup with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Jacquet Metal.
Diversification Opportunities for AptarGroup and Jacquet Metal
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AptarGroup and Jacquet is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of AptarGroup i.e., AptarGroup and Jacquet Metal go up and down completely randomly.
Pair Corralation between AptarGroup and Jacquet Metal
Assuming the 90 days horizon AptarGroup is expected to under-perform the Jacquet Metal. In addition to that, AptarGroup is 1.45 times more volatile than Jacquet Metal Service. It trades about -0.15 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.58 per unit of volatility. If you would invest 1,502 in Jacquet Metal Service on November 22, 2024 and sell it today you would earn a total of 298.00 from holding Jacquet Metal Service or generate 19.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptarGroup vs. Jacquet Metal Service
Performance |
| Timeline |
| AptarGroup |
| Jacquet Metal Service |
AptarGroup and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and Jacquet Metal
The main advantage of trading using opposite AptarGroup and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Jacquet 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| AptarGroup vs. Amcor plc | AptarGroup vs. Packaging of | AptarGroup vs. Berry Global Group | AptarGroup vs. Graphic Packaging Holding |
| Jacquet Metal vs. AGNC INVESTMENT | Jacquet Metal vs. BOSTON BEER A | Jacquet Metal vs. SLR Investment Corp | Jacquet Metal vs. Thai Beverage Public |
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.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Correlations Find global opportunities by holding instruments from different markets |