Correlation Between AptarGroup and Harte Hanks
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Harte Hanks 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 Harte Hanks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Harte Hanks, you can compare the effects of market volatilities on AptarGroup and Harte Hanks 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 Harte Hanks. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Harte Hanks.
Diversification Opportunities for AptarGroup and Harte Hanks
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptarGroup and Harte is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Harte Hanks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harte Hanks 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 Harte Hanks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harte Hanks has no effect on the direction of AptarGroup i.e., AptarGroup and Harte Hanks go up and down completely randomly.
Pair Corralation between AptarGroup and Harte Hanks
Considering the 90-day investment horizon AptarGroup is expected to generate 0.41 times more return on investment than Harte Hanks. However, AptarGroup is 2.42 times less risky than Harte Hanks. It trades about 0.08 of its potential returns per unit of risk. Harte Hanks is currently generating about -0.04 per unit of risk. If you would invest 10,744 in AptarGroup on November 2, 2024 and sell it today you would earn a total of 4,993 from holding AptarGroup or generate 46.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptarGroup vs. Harte Hanks
Performance |
| Timeline |
| AptarGroup |
| Harte Hanks |
AptarGroup and Harte Hanks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and Harte Hanks
The main advantage of trading using opposite AptarGroup and Harte Hanks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Harte Hanks 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 Harte Hanks will offset losses from the drop in Harte Hanks' long position.| AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
| Harte Hanks vs. FTAI Infrastructure | Harte Hanks vs. Steel Partners Holdings | Harte Hanks vs. Mammoth Energy Services | Harte Hanks vs. Seaboard |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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