Correlation Between AptarGroup and Greif Bros
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Greif Bros 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 Greif Bros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Greif Bros, you can compare the effects of market volatilities on AptarGroup and Greif Bros 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 Greif Bros. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Greif Bros.
Diversification Opportunities for AptarGroup and Greif Bros
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptarGroup and Greif is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Greif Bros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif Bros 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 Greif Bros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greif Bros has no effect on the direction of AptarGroup i.e., AptarGroup and Greif Bros go up and down completely randomly.
Pair Corralation between AptarGroup and Greif Bros
Considering the 90-day investment horizon AptarGroup is expected to generate 0.68 times more return on investment than Greif Bros. However, AptarGroup is 1.46 times less risky than Greif Bros. It trades about 0.1 of its potential returns per unit of risk. Greif Bros is currently generating about 0.02 per unit of risk. If you would invest 10,406 in AptarGroup on August 24, 2024 and sell it today you would earn a total of 6,582 from holding AptarGroup or generate 63.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptarGroup vs. Greif Bros
Performance |
| Timeline |
| AptarGroup |
| Greif Bros |
AptarGroup and Greif Bros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and Greif Bros
The main advantage of trading using opposite AptarGroup and Greif Bros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Greif Bros 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 Greif Bros will offset losses from the drop in Greif Bros' long position.| AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
| Greif Bros vs. Silgan Holdings | Greif Bros vs. AptarGroup | Greif Bros vs. Sonoco Products | Greif Bros vs. Graphic Packaging Holding |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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