Correlation Between BioLife Solutions and AptarGroup
Can any of the company-specific risk be diversified away by investing in both BioLife Solutions and AptarGroup 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 BioLife Solutions and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLife Solutions and AptarGroup, you can compare the effects of market volatilities on BioLife Solutions and AptarGroup 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 BioLife Solutions with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLife Solutions and AptarGroup.
Diversification Opportunities for BioLife Solutions and AptarGroup
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioLife and AptarGroup is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding BioLife Solutions and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and BioLife Solutions 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 BioLife Solutions are associated (or correlated) with AptarGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptarGroup has no effect on the direction of BioLife Solutions i.e., BioLife Solutions and AptarGroup go up and down completely randomly.
Pair Corralation between BioLife Solutions and AptarGroup
Given the investment horizon of 90 days BioLife Solutions is expected to generate 3.0 times more return on investment than AptarGroup. However, BioLife Solutions is 3.0 times more volatile than AptarGroup. It trades about 0.08 of its potential returns per unit of risk. AptarGroup is currently generating about -0.01 per unit of risk. If you would invest 2,414 in BioLife Solutions on October 31, 2024 and sell it today you would earn a total of 416.00 from holding BioLife Solutions or generate 17.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioLife Solutions vs. AptarGroup
Performance |
| Timeline |
| BioLife Solutions |
| AptarGroup |
BioLife Solutions and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioLife Solutions and AptarGroup
The main advantage of trading using opposite BioLife Solutions and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLife Solutions position performs unexpectedly, AptarGroup 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 AptarGroup will offset losses from the drop in AptarGroup's long position.| BioLife Solutions vs. Akoya Biosciences | BioLife Solutions vs. AtriCure | BioLife Solutions vs. ICU Medical | BioLife Solutions vs. Haemonetics |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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