Correlation Between AptarGroup and Electromed
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Electromed 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 AptarGroup and Electromed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Electromed, you can compare the effects of market volatilities on AptarGroup and Electromed 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 AptarGroup with a short position of Electromed. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Electromed.
Diversification Opportunities for AptarGroup and Electromed
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AptarGroup and Electromed is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Electromed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electromed and AptarGroup 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 AptarGroup are associated (or correlated) with Electromed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electromed has no effect on the direction of AptarGroup i.e., AptarGroup and Electromed go up and down completely randomly.
Pair Corralation between AptarGroup and Electromed
Considering the 90-day investment horizon AptarGroup is expected to generate 0.23 times more return on investment than Electromed. However, AptarGroup is 4.39 times less risky than Electromed. It trades about 0.08 of its potential returns per unit of risk. Electromed is currently generating about 0.01 per unit of risk. If you would invest 14,210 in AptarGroup on March 5, 2024 and sell it today you would earn a total of 559.00 from holding AptarGroup or generate 3.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AptarGroup vs. Electromed
Performance |
Timeline |
AptarGroup |
Electromed |
AptarGroup and Electromed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptarGroup and Electromed
The main advantage of trading using opposite AptarGroup and Electromed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Electromed 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 Electromed will offset losses from the drop in Electromed's long position.AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
Electromed vs. Neuropace | Electromed vs. Orthopediatrics Corp | Electromed vs. SurModics | Electromed vs. Paragon 28 |
Check out your portfolio center.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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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