Correlation Between AptarGroup and O I

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

Diversification Opportunities for AptarGroup and O I

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between AptarGroup and O I is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and O-I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O-I Glass 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 O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O-I Glass has no effect on the direction of AptarGroup i.e., AptarGroup and O I go up and down completely randomly.

Pair Corralation between AptarGroup and O I

Considering the 90-day investment horizon AptarGroup is expected to generate 1.68 times less return on investment than O I. But when comparing it to its historical volatility, AptarGroup is 1.95 times less risky than O I. It trades about 0.04 of its potential returns per unit of risk. O I Glass is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,270  in O I Glass on December 30, 2023 and sell it today you would earn a total of  389.00  from holding O I Glass or generate 30.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

AptarGroup  vs.  O-I Glass

 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.
O-I Glass 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in O I Glass are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, O I is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

AptarGroup and O I Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AptarGroup and O I

The main advantage of trading using opposite AptarGroup and O I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, O I 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 O I will offset losses from the drop in O I's long position.
The idea behind AptarGroup and O I Glass 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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