Correlation Between AptarGroup and ATRION
Can any of the company-specific risk be diversified away by investing in both AptarGroup and ATRION 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 ATRION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and ATRION, you can compare the effects of market volatilities on AptarGroup and ATRION 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 ATRION. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and ATRION.
Diversification Opportunities for AptarGroup and ATRION
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AptarGroup and ATRION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and ATRION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRION 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 ATRION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRION has no effect on the direction of AptarGroup i.e., AptarGroup and ATRION go up and down completely randomly.
Pair Corralation between AptarGroup and ATRION
Considering the 90-day investment horizon AptarGroup is expected to generate 0.12 times more return on investment than ATRION. However, AptarGroup is 8.67 times less risky than ATRION. It trades about 0.08 of its potential returns per unit of risk. ATRION is currently generating about -0.06 per unit of risk. If you would invest 13,065 in AptarGroup on November 3, 2024 and sell it today you would earn a total of 2,650 from holding AptarGroup or generate 20.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 54.84% |
| Values | Daily Returns |
AptarGroup vs. ATRION
Performance |
| Timeline |
| AptarGroup |
| ATRION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AptarGroup and ATRION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and ATRION
The main advantage of trading using opposite AptarGroup and ATRION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, ATRION 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 ATRION will offset losses from the drop in ATRION's long position.| AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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