Correlation Between InfuSystems Holdings and AptarGroup
Can any of the company-specific risk be diversified away by investing in both InfuSystems Holdings 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 InfuSystems Holdings and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InfuSystems Holdings and AptarGroup, you can compare the effects of market volatilities on InfuSystems Holdings 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 InfuSystems Holdings with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfuSystems Holdings and AptarGroup.
Diversification Opportunities for InfuSystems Holdings and AptarGroup
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between InfuSystems and AptarGroup is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and InfuSystems Holdings 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 InfuSystems Holdings 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 InfuSystems Holdings i.e., InfuSystems Holdings and AptarGroup go up and down completely randomly.
Pair Corralation between InfuSystems Holdings and AptarGroup
Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 4.06 times more return on investment than AptarGroup. However, InfuSystems Holdings is 4.06 times more volatile than AptarGroup. It trades about 0.38 of its potential returns per unit of risk. AptarGroup is currently generating about 0.08 per unit of risk. If you would invest 642.00 in InfuSystems Holdings on August 28, 2024 and sell it today you would earn a total of 283.00 from holding InfuSystems Holdings or generate 44.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InfuSystems Holdings vs. AptarGroup
Performance |
| Timeline |
| InfuSystems Holdings |
| AptarGroup |
InfuSystems Holdings and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InfuSystems Holdings and AptarGroup
The main advantage of trading using opposite InfuSystems Holdings and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfuSystems Holdings 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.| InfuSystems Holdings vs. Electromed | InfuSystems Holdings vs. Issuer Direct Corp | InfuSystems Holdings vs. IRIDEX | InfuSystems Holdings vs. Milestone Scientific |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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