Correlation Between AptarGroup and Ivy Science
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Ivy Science 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 Ivy Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Ivy Science And, you can compare the effects of market volatilities on AptarGroup and Ivy Science 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 Ivy Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Ivy Science.
Diversification Opportunities for AptarGroup and Ivy Science
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AptarGroup and Ivy is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Ivy Science And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Science And 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 Ivy Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Science And has no effect on the direction of AptarGroup i.e., AptarGroup and Ivy Science go up and down completely randomly.
Pair Corralation between AptarGroup and Ivy Science
Considering the 90-day investment horizon AptarGroup is expected to generate 0.55 times more return on investment than Ivy Science. However, AptarGroup is 1.82 times less risky than Ivy Science. It trades about -0.03 of its potential returns per unit of risk. Ivy Science And is currently generating about -0.02 per unit of risk. If you would invest 13,926 in AptarGroup on January 18, 2024 and sell it today you would lose (67.00) from holding AptarGroup or give up 0.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AptarGroup vs. Ivy Science And
Performance |
Timeline |
AptarGroup |
Ivy Science And |
AptarGroup and Ivy Science Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptarGroup and Ivy Science
The main advantage of trading using opposite AptarGroup and Ivy Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Ivy Science 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 Ivy Science will offset losses from the drop in Ivy Science's long position.AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
Ivy Science vs. VHAI | Ivy Science vs. Viscount Systems | Ivy Science vs. VivoPower International PLC | Ivy Science vs. Exela Technologies Preferred |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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