Correlation Between AptarGroup and Akoya Biosciences

Can any of the company-specific risk be diversified away by investing in both AptarGroup and Akoya Biosciences 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 Akoya Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AptarGroup and Akoya Biosciences, you can compare the effects of market volatilities on AptarGroup and Akoya Biosciences 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 Akoya Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Akoya Biosciences.

Diversification Opportunities for AptarGroup and Akoya Biosciences

-0.37

Correlation Coefficient

AptarGroup  Akoya Biosciences

Very good diversification

The 3 months correlation between AptarGroup and Akoya is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences 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 Akoya Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoya Biosciences has no effect on the direction of AptarGroup i.e., AptarGroup and Akoya Biosciences go up and down completely randomly.

Pair Corralation between AptarGroup and Akoya Biosciences

Considering the 90-day investment horizon AptarGroup is expected to generate 0.41 times more return on investment than Akoya Biosciences. However, AptarGroup is 2.44 times less risky than Akoya Biosciences. It trades about 0.17 of its potential returns per unit of risk. Akoya Biosciences is currently generating about -0.35 per unit of risk. If you would invest  14,187  in AptarGroup on February 1, 2024 and sell it today you would earn a total of  451.00  from holding AptarGroup or generate 3.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AptarGroup  vs.  Akoya Biosciences

AptarGroup

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, AptarGroup may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Akoya Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akoya Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with AptarGroup and Akoya Biosciences

The main advantage of trading using opposite AptarGroup and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Akoya Biosciences 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 Akoya Biosciences will offset losses from the drop in Akoya Biosciences' long position.

The idea behind AptarGroup and Akoya Biosciences 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.