Correlation Between AptarGroup and Packagingof America
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Packagingof America 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 Packagingof America 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 Packagingof America 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 Packagingof America. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Packagingof America.
Diversification Opportunities for AptarGroup and Packagingof America
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AptarGroup and Packagingof is 0.95. 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 Packagingof America 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 Packagingof America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Packagingof America has no effect on the direction of AptarGroup i.e., AptarGroup and Packagingof America go up and down completely randomly.
Pair Corralation between AptarGroup and Packagingof America
Assuming the 90 days horizon AptarGroup is expected to generate 1.32 times less return on investment than Packagingof America. But when comparing it to its historical volatility, AptarGroup is 1.08 times less risky than Packagingof America. It trades about 0.08 of its potential returns per unit of risk. Packaging of is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12,032 in Packaging of on August 25, 2024 and sell it today you would earn a total of 11,238 from holding Packaging of or generate 93.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
AptarGroup vs. Packaging of
Performance |
| Timeline |
| AptarGroup |
| Packagingof America |
AptarGroup and Packagingof America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and Packagingof America
The main advantage of trading using opposite AptarGroup and Packagingof America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Packagingof America 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 Packagingof America will offset losses from the drop in Packagingof America's long position.| AptarGroup vs. Superior Plus Corp | AptarGroup vs. NMI Holdings | AptarGroup vs. Origin Agritech | AptarGroup vs. SIVERS SEMICONDUCTORS AB |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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