Correlation Between Hologic and AptarGroup
Can any of the company-specific risk be diversified away by investing in both Hologic 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 Hologic and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hologic and AptarGroup, you can compare the effects of market volatilities on Hologic 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 Hologic with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hologic and AptarGroup.
Diversification Opportunities for Hologic and AptarGroup
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hologic and AptarGroup is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hologic and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Hologic 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 Hologic 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 Hologic i.e., Hologic and AptarGroup go up and down completely randomly.
Pair Corralation between Hologic and AptarGroup
Given the investment horizon of 90 days Hologic is expected to generate 4.84 times less return on investment than AptarGroup. In addition to that, Hologic is 1.08 times more volatile than AptarGroup. It trades about 0.02 of its total potential returns per unit of risk. AptarGroup is currently generating about 0.1 per unit of volatility. If you would invest 10,367 in AptarGroup on August 28, 2024 and sell it today you would earn a total of 6,883 from holding AptarGroup or generate 66.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hologic vs. AptarGroup
Performance |
| Timeline |
| Hologic |
| AptarGroup |
Hologic and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hologic and AptarGroup
The main advantage of trading using opposite Hologic and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hologic 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.| Hologic vs. Haemonetics | Hologic vs. ICU Medical | Hologic vs. Envista Holdings Corp | Hologic vs. The Cooper Companies, |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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