Correlation Between AptarGroup and Ardagh Group

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Can any of the company-specific risk be diversified away by investing in both AptarGroup and Ardagh Group 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 AptarGroup and Ardagh Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Ardagh Group SA, you can compare the effects of market volatilities on AptarGroup and Ardagh Group 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 AptarGroup with a short position of Ardagh Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Ardagh Group.

Diversification Opportunities for AptarGroup and Ardagh Group

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AptarGroup and Ardagh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Ardagh Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardagh Group SA and AptarGroup 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 AptarGroup are associated (or correlated) with Ardagh Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardagh Group SA has no effect on the direction of AptarGroup i.e., AptarGroup and Ardagh Group go up and down completely randomly.

Pair Corralation between AptarGroup and Ardagh Group

If you would invest  14,041  in AptarGroup on December 30, 2023 and sell it today you would earn a total of  348.00  from holding AptarGroup or generate 2.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

AptarGroup  vs.  Ardagh Group SA

 Performance 
       Timeline  
AptarGroup 

Risk-Adjusted Performance

20 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, AptarGroup reported solid returns over the last few months and may actually be approaching a breakup point.
Ardagh Group SA 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Ardagh Group SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Ardagh Group is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

AptarGroup and Ardagh Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AptarGroup and Ardagh Group

The main advantage of trading using opposite AptarGroup and Ardagh Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Ardagh Group 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 Ardagh Group will offset losses from the drop in Ardagh Group's long position.
The idea behind AptarGroup and Ardagh Group SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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