Correlation Between Evofem Biosciences and AptarGroup

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

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

Diversification Opportunities for Evofem Biosciences and AptarGroup

-0.8

Correlation Coefficient

Evofem Biosciences  AptarGroup

Pay attention - limited upside

The 3 months correlation between Evofem and AptarGroup is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Evofem Biosciences and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Evofem Biosciences 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 Evofem Biosciences are associated (or correlated) with AptarGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptarGroup has no effect on the direction of Evofem Biosciences i.e., Evofem Biosciences and AptarGroup go up and down completely randomly.

Pair Corralation between Evofem Biosciences and AptarGroup

If you would invest  15,016  in AptarGroup on June 27, 2024 and sell it today you would earn a total of  647.00  from holding AptarGroup or generate 4.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	4.76%
Values	Daily Returns

Evofem Biosciences  vs.  AptarGroup

Evofem Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Evofem Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Evofem Biosciences is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

AptarGroup

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 9 (%) 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 October 2024.

Pair Trading with Evofem Biosciences and AptarGroup

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

The idea behind Evofem Biosciences and AptarGroup 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.