Correlation Between Ehouse Global and AptarGroup
Can any of the company-specific risk be diversified away by investing in both Ehouse Global 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 Ehouse Global and AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehouse Global and AptarGroup, you can compare the effects of market volatilities on Ehouse Global 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 Ehouse Global with a short position of AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehouse Global and AptarGroup.
Diversification Opportunities for Ehouse Global and AptarGroup
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ehouse and AptarGroup is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ehouse Global and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup and Ehouse Global 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 Ehouse Global 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 Ehouse Global i.e., Ehouse Global and AptarGroup go up and down completely randomly.
Pair Corralation between Ehouse Global and AptarGroup
If you would invest 0.00 in Ehouse Global on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Ehouse Global or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ehouse Global vs. AptarGroup
Performance |
| Timeline |
| Ehouse Global |
| AptarGroup |
Ehouse Global and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehouse Global and AptarGroup
The main advantage of trading using opposite Ehouse Global and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehouse Global 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.| Ehouse Global vs. Ball Corporation | Ehouse Global vs. Sealed Air | Ehouse Global vs. International Paper | Ehouse Global vs. Avery Dennison Corp |
| AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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