Correlation Between Quanex Building and AptarGroup

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

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

Diversification Opportunities for Quanex Building and AptarGroup

0.57

Correlation Coefficient

Quanex Building  AptarGroup

Very weak diversification

The 3 months correlation between Quanex and AptarGroup is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Quanex Building Products and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Quanex Building 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 Quanex Building Products 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 Quanex Building i.e., Quanex Building and AptarGroup go up and down completely randomly.

Pair Corralation between Quanex Building and AptarGroup

Allowing for the 90-day total investment horizon Quanex Building Products is expected to generate 3.02 times more return on investment than AptarGroup. However, Quanex Building is 3.02 times more volatile than AptarGroup. It trades about 0.11 of its potential returns per unit of risk. AptarGroup is currently generating about 0.11 per unit of risk. If you would invest  1,661  in Quanex Building Products on May 1, 2025 and sell it today you would earn a total of  337.00  from holding Quanex Building Products or generate 20.29% return on investment over 90 days.

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

Quanex Building Products  vs.  AptarGroup

Quanex Building Products

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quanex Building Products are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Quanex Building showed solid returns over the last few months and may actually be approaching a breakup point.

AptarGroup

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, AptarGroup may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Quanex Building and AptarGroup

The main advantage of trading using opposite Quanex Building and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanex Building 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 Quanex Building Products 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.