Correlation Between AptarGroup and BioLife Solutions

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

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

Diversification Opportunities for AptarGroup and BioLife Solutions

-0.74

Correlation Coefficient

AptarGroup  BioLife Solutions

Pay attention - limited upside

The 3 months correlation between AptarGroup and BioLife is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and BioLife Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Solutions 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 BioLife Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Solutions has no effect on the direction of AptarGroup i.e., AptarGroup and BioLife Solutions go up and down completely randomly.

Pair Corralation between AptarGroup and BioLife Solutions

Considering the 90-day investment horizon AptarGroup is expected to under-perform the BioLife Solutions. But the stock apears to be less risky and, when comparing its historical volatility, AptarGroup is 3.46 times less risky than BioLife Solutions. The stock trades about -0.26 of its potential returns per unit of risk. The BioLife Solutions is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  2,580  in BioLife Solutions on July 17, 2025 and sell it today you would earn a total of  295.00  from holding BioLife Solutions or generate 11.43% return on investment over 90 days.

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

AptarGroup  vs.  BioLife Solutions

AptarGroup

Risk-Adjusted Performance

Weakest

Over the last 90 days AptarGroup has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

BioLife Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BioLife Solutions are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, BioLife Solutions unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AptarGroup and BioLife Solutions

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

The idea behind AptarGroup and BioLife Solutions 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.