Correlation Between Straumann Holding and AptarGroup
Can any of the company-specific risk be diversified away by investing in both Straumann Holding 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 Straumann Holding and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straumann Holding AG and AptarGroup, you can compare the effects of market volatilities on Straumann Holding 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 Straumann Holding with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and AptarGroup.
Diversification Opportunities for Straumann Holding and AptarGroup
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Straumann and AptarGroup is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Straumann Holding 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 Straumann Holding AG 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 Straumann Holding i.e., Straumann Holding and AptarGroup go up and down completely randomly.
Pair Corralation between Straumann Holding and AptarGroup
Assuming the 90 days horizon Straumann Holding AG is expected to under-perform the AptarGroup. In addition to that, Straumann Holding is 2.12 times more volatile than AptarGroup. It trades about -0.04 of its total potential returns per unit of risk. AptarGroup is currently generating about 0.19 per unit of volatility. If you would invest 15,150 in AptarGroup on September 7, 2024 and sell it today you would earn a total of 1,960 from holding AptarGroup or generate 12.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Straumann Holding AG vs. AptarGroup
Performance |
Timeline |
Straumann Holding |
AptarGroup |
Straumann Holding and AptarGroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Straumann Holding and AptarGroup
The main advantage of trading using opposite Straumann Holding and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding 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.Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA | Straumann Holding vs. EssilorLuxottica Socit anonyme |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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