Correlation Between Predictive Oncology and AptarGroup

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

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

Diversification Opportunities for Predictive Oncology and AptarGroup

-0.51

Correlation Coefficient

Predictive Oncology  AptarGroup

Excellent diversification

The 3 months correlation between Predictive and AptarGroup is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Predictive Oncology and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Predictive Oncology 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 Predictive Oncology 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 Predictive Oncology i.e., Predictive Oncology and AptarGroup go up and down completely randomly.

Pair Corralation between Predictive Oncology and AptarGroup

Given the investment horizon of 90 days Predictive Oncology is expected to under-perform the AptarGroup. In addition to that, Predictive Oncology is 3.24 times more volatile than AptarGroup. It trades about -0.11 of its total potential returns per unit of risk. AptarGroup is currently generating about 0.11 per unit of volatility. If you would invest  14,943  in AptarGroup on April 29, 2025 and sell it today you would earn a total of  1,156  from holding AptarGroup or generate 7.74% return on investment over 90 days.

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

Predictive Oncology  vs.  AptarGroup

Predictive Oncology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Predictive Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 Predictive Oncology and AptarGroup

The main advantage of trading using opposite Predictive Oncology and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Predictive Oncology 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 Predictive Oncology 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.