Correlation Between AptarGroup and Haemonetics
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Haemonetics 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 Haemonetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Haemonetics, you can compare the effects of market volatilities on AptarGroup and Haemonetics 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 Haemonetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Haemonetics.
Diversification Opportunities for AptarGroup and Haemonetics
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AptarGroup and Haemonetics is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics 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 Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of AptarGroup i.e., AptarGroup and Haemonetics go up and down completely randomly.
Pair Corralation between AptarGroup and Haemonetics
Considering the 90-day investment horizon AptarGroup is expected to generate 2.51 times less return on investment than Haemonetics. But when comparing it to its historical volatility, AptarGroup is 1.72 times less risky than Haemonetics. It trades about 0.19 of its potential returns per unit of risk. Haemonetics is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 8,417 in Haemonetics on February 2, 2024 and sell it today you would earn a total of 796.00 from holding Haemonetics or generate 9.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AptarGroup vs. Haemonetics
Performance |
Timeline |
AptarGroup |
Haemonetics |
AptarGroup and Haemonetics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptarGroup and Haemonetics
The main advantage of trading using opposite AptarGroup and Haemonetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Haemonetics 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 Haemonetics will offset losses from the drop in Haemonetics' long position.AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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