Correlation Between BANK HANDLOWY and AptarGroup

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

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

Diversification Opportunities for BANK HANDLOWY and AptarGroup

-0.58

Correlation Coefficient

BANK HANDLOWY  AptarGroup

Excellent diversification

The 3 months correlation between BANK and AptarGroup is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding BANK HANDLOWY and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and BANK HANDLOWY 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 BANK HANDLOWY 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 BANK HANDLOWY i.e., BANK HANDLOWY and AptarGroup go up and down completely randomly.

Pair Corralation between BANK HANDLOWY and AptarGroup

Assuming the 90 days trading horizon BANK HANDLOWY is expected to generate 0.7 times more return on investment than AptarGroup. However, BANK HANDLOWY is 1.42 times less risky than AptarGroup. It trades about 0.41 of its potential returns per unit of risk. AptarGroup is currently generating about -0.17 per unit of risk. If you would invest  2,030  in BANK HANDLOWY on December 2, 2024 and sell it today you would earn a total of  570.00  from holding BANK HANDLOWY or generate 28.08% return on investment over 90 days.

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

BANK HANDLOWY  vs.  AptarGroup

BANK HANDLOWY

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in BANK HANDLOWY are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, BANK HANDLOWY unveiled solid returns over the last few months and may actually be approaching a breakup point.

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. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with BANK HANDLOWY and AptarGroup

The main advantage of trading using opposite BANK HANDLOWY and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK HANDLOWY 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 BANK HANDLOWY 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.