Correlation Between AptarGroup and Daxor

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

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

Diversification Opportunities for AptarGroup and Daxor

0.7

Correlation Coefficient

AptarGroup  Daxor

Poor diversification

The 3 months correlation between AptarGroup and Daxor is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor 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 Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of AptarGroup i.e., AptarGroup and Daxor go up and down completely randomly.

Pair Corralation between AptarGroup and Daxor

Considering the 90-day investment horizon AptarGroup is expected to generate 0.41 times more return on investment than Daxor. However, AptarGroup is 2.43 times less risky than Daxor. It trades about -0.04 of its potential returns per unit of risk. Daxor is currently generating about -0.06 per unit of risk. If you would invest  15,824  in AptarGroup on October 8, 2024 and sell it today you would lose (496.00) from holding AptarGroup or give up 3.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.83%
Values	Daily Returns

AptarGroup  vs.  Daxor

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.

Daxor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Daxor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with AptarGroup and Daxor

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

The idea behind AptarGroup and Daxor 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.