Correlation Between Milestone Scientific and AptarGroup
Can any of the company-specific risk be diversified away by investing in both Milestone Scientific 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 Milestone Scientific and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Milestone Scientific and AptarGroup, you can compare the effects of market volatilities on Milestone Scientific 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 Milestone Scientific with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Milestone Scientific and AptarGroup.
Diversification Opportunities for Milestone Scientific and AptarGroup
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Milestone and AptarGroup is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Milestone Scientific and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Milestone Scientific 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 Milestone Scientific 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 Milestone Scientific i.e., Milestone Scientific and AptarGroup go up and down completely randomly.
Pair Corralation between Milestone Scientific and AptarGroup
Given the investment horizon of 90 days Milestone Scientific is expected to generate 3.96 times more return on investment than AptarGroup. However, Milestone Scientific is 3.96 times more volatile than AptarGroup. It trades about 0.04 of its potential returns per unit of risk. AptarGroup is currently generating about 0.08 per unit of risk. If you would invest 78.00 in Milestone Scientific on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Milestone Scientific or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Milestone Scientific vs. AptarGroup
Performance |
| Timeline |
| Milestone Scientific |
| AptarGroup |
Milestone Scientific and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Milestone Scientific and AptarGroup
The main advantage of trading using opposite Milestone Scientific and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Milestone Scientific 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.| Milestone Scientific vs. InfuSystems Holdings | Milestone Scientific vs. STRATA Skin Sciences | Milestone Scientific vs. Retractable Technologies | Milestone Scientific vs. OncoCyte 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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