Correlation Between Azenta and Ball

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

By analyzing existing cross correlation between Azenta Inc and Ball Corporation, you can compare the effects of market volatilities on Azenta and Ball 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 Azenta with a short position of Ball. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azenta and Ball.

Diversification Opportunities for Azenta and Ball

0.95

Correlation Coefficient

Azenta  Ball

Almost no diversification

The 3 months correlation between Azenta and Ball is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Azenta Inc and Ball Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ball and Azenta 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 Azenta Inc are associated (or correlated) with Ball. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ball has no effect on the direction of Azenta i.e., Azenta and Ball go up and down completely randomly.

Pair Corralation between Azenta and Ball

Given the investment horizon of 90 days Azenta Inc is expected to generate 2.31 times more return on investment than Ball. However, Azenta is 2.31 times more volatile than Ball Corporation. It trades about 0.15 of its potential returns per unit of risk. Ball Corporation is currently generating about 0.18 per unit of risk. If you would invest  2,526  in Azenta Inc on May 7, 2025 and sell it today you would earn a total of  715.00  from holding Azenta Inc or generate 28.31% return on investment over 90 days.

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

Azenta Inc  vs.  Ball Corp.

Azenta Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Azenta Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Azenta sustained solid returns over the last few months and may actually be approaching a breakup point.

Ball

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ball Corporation are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Ball disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Azenta and Ball

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

The idea behind Azenta Inc and Ball Corporation 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.