Correlation Between Aptamer Group and Givaudan
Can any of the company-specific risk be diversified away by investing in both Aptamer Group and Givaudan 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 Aptamer Group and Givaudan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptamer Group PLC and Givaudan SA, you can compare the effects of market volatilities on Aptamer Group and Givaudan 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 Aptamer Group with a short position of Givaudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptamer Group and Givaudan.
Diversification Opportunities for Aptamer Group and Givaudan
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aptamer and Givaudan is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Aptamer Group PLC and Givaudan SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Givaudan SA and Aptamer Group 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 Aptamer Group PLC are associated (or correlated) with Givaudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Givaudan SA has no effect on the direction of Aptamer Group i.e., Aptamer Group and Givaudan go up and down completely randomly.
Pair Corralation between Aptamer Group and Givaudan
Assuming the 90 days trading horizon Aptamer Group PLC is expected to generate 5.71 times more return on investment than Givaudan. However, Aptamer Group is 5.71 times more volatile than Givaudan SA. It trades about 0.2 of its potential returns per unit of risk. Givaudan SA is currently generating about 0.03 per unit of risk. If you would invest 36.00 in Aptamer Group PLC on October 20, 2024 and sell it today you would earn a total of 6.00 from holding Aptamer Group PLC or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Aptamer Group PLC vs. Givaudan SA
Performance |
| Timeline |
| Aptamer Group PLC |
| Givaudan SA |
Aptamer Group and Givaudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptamer Group and Givaudan
The main advantage of trading using opposite Aptamer Group and Givaudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptamer Group position performs unexpectedly, Givaudan 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 Givaudan will offset losses from the drop in Givaudan's long position.| Aptamer Group vs. Samsung Electronics Co | Aptamer Group vs. Samsung Electronics Co | Aptamer Group vs. Toyota Motor Corp | Aptamer Group vs. Reliance Industries Ltd |
| Givaudan vs. Cornish Metals | Givaudan vs. Ebro Foods | Givaudan vs. Sovereign Metals | Givaudan vs. GreenX Metals |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |