Correlation Between Cooper Companies, and AptarGroup
Can any of the company-specific risk be diversified away by investing in both Cooper Companies, 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 Cooper Companies, and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Cooper Companies, and AptarGroup, you can compare the effects of market volatilities on Cooper Companies, 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 Cooper Companies, with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Companies, and AptarGroup.
Diversification Opportunities for Cooper Companies, and AptarGroup
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cooper and AptarGroup is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies, and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Cooper Companies, 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 The Cooper Companies, 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 Cooper Companies, i.e., Cooper Companies, and AptarGroup go up and down completely randomly.
Pair Corralation between Cooper Companies, and AptarGroup
Considering the 90-day investment horizon The Cooper Companies, is expected to under-perform the AptarGroup. But the stock apears to be less risky and, when comparing its historical volatility, The Cooper Companies, is 1.36 times less risky than AptarGroup. The stock trades about -0.15 of its potential returns per unit of risk. The AptarGroup is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16,910 in AptarGroup on August 27, 2024 and sell it today you would earn a total of 340.00 from holding AptarGroup or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cooper Companies, vs. AptarGroup
Performance |
| Timeline |
| Cooper Companies, |
| AptarGroup |
Cooper Companies, and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Companies, and AptarGroup
The main advantage of trading using opposite Cooper Companies, and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies, 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.| Cooper Companies, vs. West Pharmaceutical Services | Cooper Companies, vs. Hologic | Cooper Companies, vs. ICU Medical | Cooper Companies, 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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