Correlation Between ZEN Graphene and AptarGroup

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

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

Diversification Opportunities for ZEN Graphene and AptarGroup

-0.42

Correlation Coefficient

ZEN Graphene  AptarGroup

Very good diversification

The 3 months correlation between ZEN and AptarGroup is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ZEN Graphene Solutions and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and ZEN Graphene 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 ZEN Graphene Solutions 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 ZEN Graphene i.e., ZEN Graphene and AptarGroup go up and down completely randomly.

Pair Corralation between ZEN Graphene and AptarGroup

Given the investment horizon of 90 days ZEN Graphene Solutions is expected to under-perform the AptarGroup. In addition to that, ZEN Graphene is 2.35 times more volatile than AptarGroup. It trades about -0.28 of its total potential returns per unit of risk. AptarGroup is currently generating about -0.05 per unit of volatility. If you would invest  15,106  in AptarGroup on May 5, 2025 and sell it today you would lose (971.00) from holding AptarGroup or give up 6.43% of portfolio value over 90 days.

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

ZEN Graphene Solutions  vs.  AptarGroup

ZEN Graphene Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZEN Graphene Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

AptarGroup

Risk-Adjusted Performance

Very Weak

Over the last 90 days AptarGroup has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, AptarGroup is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ZEN Graphene and AptarGroup

The main advantage of trading using opposite ZEN Graphene and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEN Graphene 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 ZEN Graphene Solutions 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.