Correlation Between Haemonetics and AptarGroup
Can any of the company-specific risk be diversified away by investing in both Haemonetics 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 Haemonetics and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haemonetics and AptarGroup, you can compare the effects of market volatilities on Haemonetics 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 Haemonetics with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haemonetics and AptarGroup.
Diversification Opportunities for Haemonetics and AptarGroup
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haemonetics and AptarGroup is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Haemonetics 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 Haemonetics 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 Haemonetics i.e., Haemonetics and AptarGroup go up and down completely randomly.
Pair Corralation between Haemonetics and AptarGroup
Considering the 90-day investment horizon Haemonetics is expected to under-perform the AptarGroup. In addition to that, Haemonetics is 2.81 times more volatile than AptarGroup. It trades about -0.12 of its total potential returns per unit of risk. AptarGroup is currently generating about -0.11 per unit of volatility. If you would invest 15,852 in AptarGroup on October 22, 2024 and sell it today you would lose (243.00) from holding AptarGroup or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haemonetics vs. AptarGroup
Performance |
| Timeline |
| Haemonetics |
| AptarGroup |
Haemonetics and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haemonetics and AptarGroup
The main advantage of trading using opposite Haemonetics and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haemonetics 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.| Haemonetics vs. Merit Medical Systems | Haemonetics vs. AngioDynamics | Haemonetics vs. AptarGroup | Haemonetics vs. Envista Holdings Corp |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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