Correlation Between AptarGroup and Crown Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Crown Holdings 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 Crown Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Crown Holdings, you can compare the effects of market volatilities on AptarGroup and Crown Holdings 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 Crown Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Crown Holdings.

Diversification Opportunities for AptarGroup and Crown Holdings

-0.83
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AptarGroup and Crown is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Crown Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Holdings 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 Crown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Holdings has no effect on the direction of AptarGroup i.e., AptarGroup and Crown Holdings go up and down completely randomly.

Pair Corralation between AptarGroup and Crown Holdings

Considering the 90-day investment horizon AptarGroup is expected to generate 0.49 times more return on investment than Crown Holdings. However, AptarGroup is 2.03 times less risky than Crown Holdings. It trades about 0.25 of its potential returns per unit of risk. Crown Holdings is currently generating about -0.1 per unit of risk. If you would invest  12,324  in AptarGroup on December 29, 2023 and sell it today you would earn a total of  2,065  from holding AptarGroup or generate 16.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AptarGroup  vs.  Crown Holdings

 Performance 
       Timeline  
AptarGroup 

Risk-Adjusted Performance

19 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, AptarGroup reported solid returns over the last few months and may actually be approaching a breakup point.
Crown Holdings 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Crown Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in April 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

AptarGroup and Crown Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AptarGroup and Crown Holdings

The main advantage of trading using opposite AptarGroup and Crown Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Crown Holdings 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 Crown Holdings will offset losses from the drop in Crown Holdings' long position.
The idea behind AptarGroup and Crown Holdings 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Fundamental Analysis
View fundamental data based on most recent published financial statements
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Transaction History
View history of all your transactions and understand their impact on performance
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital