Correlation Between AptarGroup and Central Proteina
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Central Proteina 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 Central Proteina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Central Proteina Prima, you can compare the effects of market volatilities on AptarGroup and Central Proteina 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 Central Proteina. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Central Proteina.
Diversification Opportunities for AptarGroup and Central Proteina
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AptarGroup and Central is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Central Proteina Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Proteina Prima 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 Central Proteina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Proteina Prima has no effect on the direction of AptarGroup i.e., AptarGroup and Central Proteina go up and down completely randomly.
Pair Corralation between AptarGroup and Central Proteina
Considering the 90-day investment horizon AptarGroup is expected to generate 0.56 times more return on investment than Central Proteina. However, AptarGroup is 1.78 times less risky than Central Proteina. It trades about 0.1 of its potential returns per unit of risk. Central Proteina Prima is currently generating about 0.03 per unit of risk. If you would invest 13,078 in AptarGroup on January 20, 2024 and sell it today you would earn a total of 833.00 from holding AptarGroup or generate 6.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.48% |
| Values | Daily Returns |
AptarGroup vs. Central Proteina Prima
Performance |
| Timeline |
| AptarGroup |
| Central Proteina Prima |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
AptarGroup and Central Proteina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and Central Proteina
The main advantage of trading using opposite AptarGroup and Central Proteina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Central Proteina 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 Central Proteina will offset losses from the drop in Central Proteina's 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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