Correlation Between AptarGroup and Graphic Packaging
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Graphic Packaging 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 Graphic Packaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Graphic Packaging Holding, you can compare the effects of market volatilities on AptarGroup and Graphic Packaging 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 Graphic Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Graphic Packaging.
Diversification Opportunities for AptarGroup and Graphic Packaging
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptarGroup and Graphic is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Graphic Packaging Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging Holding 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 Graphic Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging Holding has no effect on the direction of AptarGroup i.e., AptarGroup and Graphic Packaging go up and down completely randomly.
Pair Corralation between AptarGroup and Graphic Packaging
Considering the 90-day investment horizon AptarGroup is expected to generate 0.65 times more return on investment than Graphic Packaging. However, AptarGroup is 1.54 times less risky than Graphic Packaging. It trades about 0.11 of its potential returns per unit of risk. Graphic Packaging Holding is currently generating about 0.07 per unit of risk. If you would invest 13,129 in AptarGroup on January 26, 2024 and sell it today you would earn a total of 872.00 from holding AptarGroup or generate 6.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
AptarGroup vs. Graphic Packaging Holding
Performance |
Timeline |
AptarGroup |
Graphic Packaging Holding |
AptarGroup and Graphic Packaging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptarGroup and Graphic Packaging
The main advantage of trading using opposite AptarGroup and Graphic Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Graphic Packaging 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 Graphic Packaging will offset losses from the drop in Graphic Packaging's long position.AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
Graphic Packaging vs. Packaging Corp of | Graphic Packaging vs. O I Glass | Graphic Packaging vs. Silgan Holdings | Graphic Packaging vs. Sealed Air |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
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 | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |