Correlation Between AptarGroup and Kokoh Inti

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy90.91%
ValuesDaily Returns

AptarGroup  vs.  Kokoh Inti Arebama

 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.
Kokoh Inti Arebama 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Kokoh Inti Arebama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

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.
The idea behind AptarGroup and Kokoh Inti Arebama 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Money Managers
Screen money managers from public funds and ETFs managed around the world
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Volatility Analysis
Get historical volatility and risk analysis based on latest market data