Correlation Between AptarGroup and Glatfelter

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

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

Diversification Opportunities for AptarGroup and Glatfelter

0.04

Correlation Coefficient

AptarGroup  Glatfelter

Significant diversification

The 3 months correlation between AptarGroup and Glatfelter is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Glatfelter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glatfelter 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 Glatfelter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glatfelter has no effect on the direction of AptarGroup i.e., AptarGroup and Glatfelter go up and down completely randomly.

Pair Corralation between AptarGroup and Glatfelter

Considering the 90-day investment horizon AptarGroup is expected to generate 0.35 times more return on investment than Glatfelter. However, AptarGroup is 2.82 times less risky than Glatfelter. It trades about -0.01 of its potential returns per unit of risk. Glatfelter is currently generating about -0.11 per unit of risk. If you would invest  15,976  in AptarGroup on September 29, 2024 and sell it today you would lose (161.00) from holding AptarGroup or give up 1.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	42.86%
Values	Daily Returns

AptarGroup  vs.  Glatfelter

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.

Glatfelter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glatfelter has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with AptarGroup and Glatfelter

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

The idea behind AptarGroup and Glatfelter 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.