Correlation Between AptarGroup and Nephros
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Nephros 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 Nephros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Nephros, you can compare the effects of market volatilities on AptarGroup and Nephros 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 Nephros. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Nephros.
Diversification Opportunities for AptarGroup and Nephros
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AptarGroup and Nephros is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Nephros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nephros 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 Nephros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nephros has no effect on the direction of AptarGroup i.e., AptarGroup and Nephros go up and down completely randomly.
Pair Corralation between AptarGroup and Nephros
Considering the 90-day investment horizon AptarGroup is expected to under-perform the Nephros. But the stock apears to be less risky and, when comparing its historical volatility, AptarGroup is 2.56 times less risky than Nephros. The stock trades about 0.0 of its potential returns per unit of risk. The Nephros is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 219.00 in Nephros on January 28, 2024 and sell it today you would earn a total of 0.00 from holding Nephros or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AptarGroup vs. Nephros
Performance |
Timeline |
AptarGroup |
Nephros |
AptarGroup and Nephros Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptarGroup and Nephros
The main advantage of trading using opposite AptarGroup and Nephros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Nephros 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 Nephros will offset losses from the drop in Nephros' long position.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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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