Correlation Between AptarGroup and Ball

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

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

Diversification Opportunities for AptarGroup and Ball

0.16

Correlation Coefficient

AptarGroup  Ball

Average diversification

The 3 months correlation between AptarGroup and Ball is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Ball Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ball 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 Ball. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ball has no effect on the direction of AptarGroup i.e., AptarGroup and Ball go up and down completely randomly.

Pair Corralation between AptarGroup and Ball

Considering the 90-day investment horizon AptarGroup is expected to under-perform the Ball. But the stock apears to be less risky and, when comparing its historical volatility, AptarGroup is 1.3 times less risky than Ball. The stock trades about -0.23 of its potential returns per unit of risk. The Ball Corporation is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest  6,008  in Ball Corporation on October 7, 2024 and sell it today you would lose (605.00) from holding Ball Corporation or give up 10.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AptarGroup  vs.  Ball Corp.

AptarGroup

Risk-Adjusted Performance

0 of 100

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 latest stock price agitation, may contribute to short-term losses for the retail investors.

Ball

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with AptarGroup and Ball

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

The idea behind AptarGroup and Ball Corporation 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.