Correlation Between Sharps Technology and AptarGroup
Can any of the company-specific risk be diversified away by investing in both Sharps Technology 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 Sharps Technology and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharps Technology and AptarGroup, you can compare the effects of market volatilities on Sharps Technology 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 Sharps Technology with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and AptarGroup.
Diversification Opportunities for Sharps Technology and AptarGroup
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sharps and AptarGroup is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Sharps Technology 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 Sharps Technology 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 Sharps Technology i.e., Sharps Technology and AptarGroup go up and down completely randomly.
Pair Corralation between Sharps Technology and AptarGroup
Given the investment horizon of 90 days Sharps Technology is expected to generate 4.88 times more return on investment than AptarGroup. However, Sharps Technology is 4.88 times more volatile than AptarGroup. It trades about 0.23 of its potential returns per unit of risk. AptarGroup is currently generating about 0.08 per unit of risk. If you would invest 275.00 in Sharps Technology on August 28, 2024 and sell it today you would earn a total of 78.00 from holding Sharps Technology or generate 28.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharps Technology vs. AptarGroup
Performance |
| Timeline |
| Sharps Technology |
| AptarGroup |
Sharps Technology and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and AptarGroup
The main advantage of trading using opposite Sharps Technology and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology 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.| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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