Correlation Between AptarGroup and Berry Global

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

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

Diversification Opportunities for AptarGroup and Berry Global

0.66

Correlation Coefficient

AptarGroup  Berry Global

Poor diversification

The 3 months correlation between AptarGroup and Berry is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Berry Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berry Global Group 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 Berry Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berry Global Group has no effect on the direction of AptarGroup i.e., AptarGroup and Berry Global go up and down completely randomly.

Pair Corralation between AptarGroup and Berry Global

Assuming the 90 days horizon AptarGroup is expected to generate 0.8 times more return on investment than Berry Global. However, AptarGroup is 1.24 times less risky than Berry Global. It trades about 0.11 of its potential returns per unit of risk. Berry Global Group is currently generating about 0.05 per unit of risk. If you would invest  13,849  in AptarGroup on September 23, 2024 and sell it today you would earn a total of  1,401  from holding AptarGroup or generate 10.12% return on investment over 90 days.

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

AptarGroup  vs.  Berry Global Group

AptarGroup

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AptarGroup may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Berry Global Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Berry Global Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Berry Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AptarGroup and Berry Global

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

The idea behind AptarGroup and Berry Global Group 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.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.