Correlation Between AptarGroup and Utah Medical
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Utah Medical 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 Utah Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Utah Medical Products, you can compare the effects of market volatilities on AptarGroup and Utah Medical 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 Utah Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Utah Medical.
Diversification Opportunities for AptarGroup and Utah Medical
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AptarGroup and Utah is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Utah Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utah Medical Products 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 Utah Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utah Medical Products has no effect on the direction of AptarGroup i.e., AptarGroup and Utah Medical go up and down completely randomly.
Pair Corralation between AptarGroup and Utah Medical
Considering the 90-day investment horizon AptarGroup is expected to generate 0.95 times more return on investment than Utah Medical. However, AptarGroup is 1.05 times less risky than Utah Medical. It trades about 0.19 of its potential returns per unit of risk. Utah Medical Products is currently generating about -0.04 per unit of risk. If you would invest 15,150 in AptarGroup on September 8, 2024 and sell it today you would earn a total of 1,965 from holding AptarGroup or generate 12.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AptarGroup vs. Utah Medical Products
Performance |
Timeline |
AptarGroup |
Utah Medical Products |
AptarGroup and Utah Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptarGroup and Utah Medical
The main advantage of trading using opposite AptarGroup and Utah Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Utah Medical 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 Utah Medical will offset losses from the drop in Utah Medical's long position.AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
Utah Medical vs. Precision Optics, | Utah Medical vs. Repro Med Systems | Utah Medical vs. InfuSystems Holdings | Utah Medical vs. Milestone Scientific |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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