Correlation Between AptarGroup and O I

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

By analyzing existing cross correlation between AptarGroup and O I Glass, you can compare the effects of market volatilities on AptarGroup and O I 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 O I. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and O I.

Diversification Opportunities for AptarGroup and O I

0.39

Correlation Coefficient

AptarGroup  O I

Weak diversification

The 1 month correlation between AptarGroup and O I is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and O I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O I Glass 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 O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O I Glass has no effect on the direction of AptarGroup i.e., AptarGroup and O I go up and down completely randomly.

Pair Corralation between AptarGroup and O I

Considering the 90-day investment horizon AptarGroup is expected to generate 0.49 times more return on investment than O I. However, AptarGroup is 2.04 times less risky than O I. It trades about 0.06 of its potential returns per unit of risk. O I Glass is currently generating about 0.03 per unit of risk. If you would invest  10,178  in AptarGroup on January 30, 2024 and sell it today you would earn a total of  4,155  from holding AptarGroup or generate 40.82% return on investment over 90 days.

Time Period	1 Month [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

AptarGroup  vs.  O I Glass

AptarGroup

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, AptarGroup is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

O I Glass

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days O I Glass has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in May 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with AptarGroup and O I

The main advantage of trading using opposite AptarGroup and O I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, O I 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 O I will offset losses from the drop in O I's long position.

The idea behind AptarGroup and O I Glass 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 Stocks Directory module to find actively traded stocks across global markets.