Correlation Between AptarGroup and Packaging
Can any of the company-specific risk be diversified away by investing in both AptarGroup and 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 Packaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Packaging of, you can compare the effects of market volatilities on AptarGroup and 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 Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Packaging.
Diversification Opportunities for AptarGroup and Packaging
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AptarGroup and Packaging is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Packaging of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Packaging 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 Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Packaging has no effect on the direction of AptarGroup i.e., AptarGroup and Packaging go up and down completely randomly.
Pair Corralation between AptarGroup and Packaging
Assuming the 90 days horizon AptarGroup is expected to generate 1.09 times less return on investment than Packaging. In addition to that, AptarGroup is 1.0 times more volatile than Packaging of. It trades about 0.19 of its total potential returns per unit of risk. Packaging of is currently generating about 0.2 per unit of volatility. If you would invest 20,040 in Packaging of on September 13, 2024 and sell it today you would earn a total of 2,540 from holding Packaging of or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.73% |
| Values | Daily Returns |
AptarGroup vs. Packaging of
Performance |
| Timeline |
| AptarGroup |
| Packaging |
AptarGroup and Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and Packaging
The main advantage of trading using opposite AptarGroup and Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, 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 Packaging will offset losses from the drop in Packaging's long position.| AptarGroup vs. Aozora Bank | AptarGroup vs. Chiba Bank | AptarGroup vs. CHIBA BANK | AptarGroup vs. Zijin Mining Group |
| Packaging vs. Graphic Packaging Holding | Packaging vs. Superior Plus Corp | Packaging vs. SIVERS SEMICONDUCTORS AB | Packaging vs. Norsk Hydro ASA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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