Correlation Between Enzon Pharmaceuticals and AptarGroup

Can any of the company-specific risk be diversified away by investing in both Enzon Pharmaceuticals and AptarGroup 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 Enzon Pharmaceuticals and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enzon Pharmaceuticals and AptarGroup, you can compare the effects of market volatilities on Enzon Pharmaceuticals and AptarGroup 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 Enzon Pharmaceuticals with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enzon Pharmaceuticals and AptarGroup.

Diversification Opportunities for Enzon Pharmaceuticals and AptarGroup

-0.43

Correlation Coefficient

Enzon Pharmaceuticals  AptarGroup

Very good diversification

The 3 months correlation between Enzon and AptarGroup is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Enzon Pharmaceuticals and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Enzon Pharmaceuticals 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 Enzon Pharmaceuticals are associated (or correlated) with AptarGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptarGroup has no effect on the direction of Enzon Pharmaceuticals i.e., Enzon Pharmaceuticals and AptarGroup go up and down completely randomly.

Pair Corralation between Enzon Pharmaceuticals and AptarGroup

If you would invest  14,187  in AptarGroup on January 31, 2024 and sell it today you would earn a total of  451.00  from holding AptarGroup or generate 3.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

Enzon Pharmaceuticals  vs.  AptarGroup

Enzon Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enzon Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Enzon Pharmaceuticals is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

AptarGroup

Risk-Adjusted Performance

15 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, AptarGroup reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enzon Pharmaceuticals and AptarGroup

The main advantage of trading using opposite Enzon Pharmaceuticals and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enzon Pharmaceuticals position performs unexpectedly, AptarGroup 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 AptarGroup will offset losses from the drop in AptarGroup's long position.

The idea behind Enzon Pharmaceuticals and AptarGroup 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.

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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.