Correlation Between AptarGroup and Kokoh Inti
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Kokoh Inti 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 Kokoh Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Kokoh Inti Arebama, you can compare the effects of market volatilities on AptarGroup and Kokoh Inti 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 Kokoh Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Kokoh Inti.
Diversification Opportunities for AptarGroup and Kokoh Inti
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AptarGroup and Kokoh is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Kokoh Inti Arebama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kokoh Inti Arebama 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 Kokoh Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kokoh Inti Arebama has no effect on the direction of AptarGroup i.e., AptarGroup and Kokoh Inti go up and down completely randomly.
Pair Corralation between AptarGroup and Kokoh Inti
Considering the 90-day investment horizon AptarGroup is expected to generate 0.23 times more return on investment than Kokoh Inti. However, AptarGroup is 4.32 times less risky than Kokoh Inti. It trades about 0.21 of its potential returns per unit of risk. Kokoh Inti Arebama is currently generating about 0.01 per unit of risk. If you would invest 14,031 in AptarGroup on December 29, 2023 and sell it today you would earn a total of 435.00 from holding AptarGroup or generate 3.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 90.91% |
Values | Daily Returns |
AptarGroup vs. Kokoh Inti Arebama
Performance |
Timeline |
AptarGroup |
Kokoh Inti Arebama |
AptarGroup and Kokoh Inti Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptarGroup and Kokoh Inti
The main advantage of trading using opposite AptarGroup and Kokoh Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Kokoh Inti 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 Kokoh Inti will offset losses from the drop in Kokoh Inti's long position.AptarGroup vs. Nephros | AptarGroup vs. Sharps Technology Warrant | AptarGroup vs. O I Glass | AptarGroup vs. Crown Holdings |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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