Correlation Between AptarGroup and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Solstad Offshore 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 Solstad Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Solstad Offshore ASA, you can compare the effects of market volatilities on AptarGroup and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Solstad Offshore.
Diversification Opportunities for AptarGroup and Solstad Offshore
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AptarGroup and Solstad is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of AptarGroup i.e., AptarGroup and Solstad Offshore go up and down completely randomly.
Pair Corralation between AptarGroup and Solstad Offshore
Assuming the 90 days horizon AptarGroup is expected to generate 0.54 times more return on investment than Solstad Offshore. However, AptarGroup is 1.87 times less risky than Solstad Offshore. It trades about 0.11 of its potential returns per unit of risk. Solstad Offshore ASA is currently generating about -0.05 per unit of risk. If you would invest 13,485 in AptarGroup on August 26, 2024 and sell it today you would earn a total of 2,755 from holding AptarGroup or generate 20.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptarGroup vs. Solstad Offshore ASA
Performance |
| Timeline |
| AptarGroup |
| Solstad Offshore ASA |
AptarGroup and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and Solstad Offshore
The main advantage of trading using opposite AptarGroup and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore's long position.| AptarGroup vs. Solstad Offshore ASA | AptarGroup vs. ITALIAN WINE BRANDS | AptarGroup vs. VIRGIN WINES UK | AptarGroup vs. Soken Chemical Engineering |
| Solstad Offshore vs. Superior Plus Corp | Solstad Offshore vs. NMI Holdings | Solstad Offshore vs. Origin Agritech | Solstad Offshore 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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