Correlation Between AptarGroup and Carlisle Companies

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

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

Diversification Opportunities for AptarGroup and Carlisle Companies

0.72

Correlation Coefficient

AptarGroup  Carlisle Companies

Poor diversification

The 3 months correlation between AptarGroup and Carlisle is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Carlisle Companies Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlisle Companies 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 Carlisle Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlisle Companies has no effect on the direction of AptarGroup i.e., AptarGroup and Carlisle Companies go up and down completely randomly.

Pair Corralation between AptarGroup and Carlisle Companies

Considering the 90-day investment horizon AptarGroup is expected to under-perform the Carlisle Companies. But the stock apears to be less risky and, when comparing its historical volatility, AptarGroup is 1.79 times less risky than Carlisle Companies. The stock trades about -0.15 of its potential returns per unit of risk. The Carlisle Companies Incorporated is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  37,231  in Carlisle Companies Incorporated on June 30, 2025 and sell it today you would lose (4,479) from holding Carlisle Companies Incorporated or give up 12.03% of portfolio value over 90 days.

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

AptarGroup  vs.  Carlisle Companies Incorporate

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 October 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Carlisle Companies

Risk-Adjusted Performance

Weakest

Over the last 90 days Carlisle Companies Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady 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.

Pair Trading with AptarGroup and Carlisle Companies

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

The idea behind AptarGroup and Carlisle Companies Incorporated 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.