Correlation Between Opus Genetics, and AptarGroup

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

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

Diversification Opportunities for Opus Genetics, and AptarGroup

-0.28

Correlation Coefficient

Opus Genetics,  AptarGroup

Very good diversification

The 3 months correlation between Opus and AptarGroup is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Opus Genetics, and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Opus Genetics, 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 Opus Genetics, 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 Opus Genetics, i.e., Opus Genetics, and AptarGroup go up and down completely randomly.

Pair Corralation between Opus Genetics, and AptarGroup

Considering the 90-day investment horizon Opus Genetics, is expected to under-perform the AptarGroup. In addition to that, Opus Genetics, is 5.26 times more volatile than AptarGroup. It trades about -0.08 of its total potential returns per unit of risk. AptarGroup is currently generating about -0.12 per unit of volatility. If you would invest  16,910  in AptarGroup on September 26, 2024 and sell it today you would lose (975.00) from holding AptarGroup or give up 5.77% of portfolio value over 90 days.

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

Opus Genetics,  vs.  AptarGroup

Opus Genetics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Opus Genetics, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

AptarGroup

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 1 (%) 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.

Pair Trading with Opus Genetics, and AptarGroup

The main advantage of trading using opposite Opus Genetics, and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opus Genetics, 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 Opus Genetics, 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.