Correlation Between AptarGroup and O I
Can any of the company-specific risk be diversified away by investing in both AptarGroup and O I 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 O I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and O I Glass, you can compare the effects of market volatilities on AptarGroup and O I 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 O I. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and O I.
Diversification Opportunities for AptarGroup and O I
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between AptarGroup and O I is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and O I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O I Glass 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 O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O I Glass has no effect on the direction of AptarGroup i.e., AptarGroup and O I go up and down completely randomly.
Pair Corralation between AptarGroup and O I
Considering the 90-day investment horizon AptarGroup is expected to generate 0.33 times more return on investment than O I. However, AptarGroup is 3.0 times less risky than O I. It trades about 0.11 of its potential returns per unit of risk. O I Glass is currently generating about -0.03 per unit of risk. If you would invest 13,909 in AptarGroup on August 25, 2024 and sell it today you would earn a total of 3,242 from holding AptarGroup or generate 23.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptarGroup vs. O I Glass
Performance |
| Timeline |
| AptarGroup |
| O I Glass |
AptarGroup and O I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and O I
The main advantage of trading using opposite AptarGroup and O I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, O I 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 O I will offset losses from the drop in O I'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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |