Correlation Between AptarGroup and Repligen

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

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

Diversification Opportunities for AptarGroup and Repligen

-0.56

Correlation Coefficient

AptarGroup  Repligen

Excellent diversification

The 3 months correlation between AptarGroup and Repligen is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of AptarGroup i.e., AptarGroup and Repligen go up and down completely randomly.

Pair Corralation between AptarGroup and Repligen

Considering the 90-day investment horizon AptarGroup is expected to under-perform the Repligen. But the stock apears to be less risky and, when comparing its historical volatility, AptarGroup is 1.97 times less risky than Repligen. The stock trades about -0.11 of its potential returns per unit of risk. The Repligen is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  11,975  in Repligen on September 16, 2025 and sell it today you would earn a total of  3,764  from holding Repligen or generate 31.43% return on investment over 90 days.

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

AptarGroup  vs.  Repligen

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 latest inconsistent performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Repligen

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Repligen are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Repligen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AptarGroup and Repligen

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

The idea behind AptarGroup and Repligen 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.