Correlation Between ScanSource and AptarGroup
Can any of the company-specific risk be diversified away by investing in both ScanSource 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 ScanSource and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and AptarGroup, you can compare the effects of market volatilities on ScanSource 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 ScanSource with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and AptarGroup.
Diversification Opportunities for ScanSource and AptarGroup
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ScanSource and AptarGroup is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and ScanSource 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 ScanSource 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 ScanSource i.e., ScanSource and AptarGroup go up and down completely randomly.
Pair Corralation between ScanSource and AptarGroup
Assuming the 90 days horizon ScanSource is expected to generate 1.77 times more return on investment than AptarGroup. However, ScanSource is 1.77 times more volatile than AptarGroup. It trades about 0.08 of its potential returns per unit of risk. AptarGroup is currently generating about 0.12 per unit of risk. If you would invest 3,320 in ScanSource on September 2, 2024 and sell it today you would earn a total of 1,400 from holding ScanSource or generate 42.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ScanSource vs. AptarGroup
Performance |
| Timeline |
| ScanSource |
| AptarGroup |
ScanSource and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanSource and AptarGroup
The main advantage of trading using opposite ScanSource and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource 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.| ScanSource vs. Siemens Aktiengesellschaft | ScanSource vs. Blue Sky Uranium | ScanSource vs. Plug Power | ScanSource vs. The Bank of |
| AptarGroup vs. ScanSource | AptarGroup vs. BW OFFSHORE LTD | AptarGroup vs. AOI Electronics Co | AptarGroup vs. KIMBALL ELECTRONICS |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |