Correlation Between AptarGroup and Electronics Fund
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Electronics Fund 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 Electronics Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Electronics Fund Class, you can compare the effects of market volatilities on AptarGroup and Electronics Fund 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 Electronics Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Electronics Fund.
Diversification Opportunities for AptarGroup and Electronics Fund
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AptarGroup and Electronics is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Electronics Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronics Fund Class 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 Electronics Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronics Fund Class has no effect on the direction of AptarGroup i.e., AptarGroup and Electronics Fund go up and down completely randomly.
Pair Corralation between AptarGroup and Electronics Fund
Considering the 90-day investment horizon AptarGroup is expected to generate 0.55 times more return on investment than Electronics Fund. However, AptarGroup is 1.82 times less risky than Electronics Fund. It trades about 0.1 of its potential returns per unit of risk. Electronics Fund Class 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 | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AptarGroup vs. Electronics Fund Class
Performance |
Timeline |
AptarGroup |
Electronics Fund Class |
AptarGroup and Electronics Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptarGroup and Electronics Fund
The main advantage of trading using opposite AptarGroup and Electronics Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Electronics Fund 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 Electronics Fund will offset losses from the drop in Electronics Fund's long position.AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
Electronics Fund vs. VHAI | Electronics Fund vs. Viscount Systems | Electronics Fund vs. VivoPower International PLC | Electronics Fund 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |