Correlation Between AptarGroup and Sportsmans

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

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

Diversification Opportunities for AptarGroup and Sportsmans

-0.29

Correlation Coefficient

AptarGroup  Sportsmans

Very good diversification

The 3 months correlation between AptarGroup and Sportsmans is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Sportsmans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsmans 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 Sportsmans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsmans has no effect on the direction of AptarGroup i.e., AptarGroup and Sportsmans go up and down completely randomly.

Pair Corralation between AptarGroup and Sportsmans

Considering the 90-day investment horizon AptarGroup is expected to generate 0.2 times more return on investment than Sportsmans. However, AptarGroup is 4.88 times less risky than Sportsmans. It trades about 0.21 of its potential returns per unit of risk. Sportsmans is currently generating about 0.03 per unit of risk. If you would invest  14,454  in AptarGroup on September 5, 2024 and sell it today you would earn a total of  2,786  from holding AptarGroup or generate 19.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.82%
Values	Daily Returns

AptarGroup  vs.  Sportsmans

AptarGroup

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, AptarGroup reported solid returns over the last few months and may actually be approaching a breakup point.

Sportsmans

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sportsmans has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Sportsmans is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with AptarGroup and Sportsmans

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

The idea behind AptarGroup and Sportsmans 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.