Correlation Between AptarGroup and Align Technology
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Align Technology 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 Align Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Align Technology, you can compare the effects of market volatilities on AptarGroup and Align Technology 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 Align Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Align Technology.
Diversification Opportunities for AptarGroup and Align Technology
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between AptarGroup and Align is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology 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 Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of AptarGroup i.e., AptarGroup and Align Technology go up and down completely randomly.
Pair Corralation between AptarGroup and Align Technology
Considering the 90-day investment horizon AptarGroup is expected to under-perform the Align Technology. But the stock apears to be less risky and, when comparing its historical volatility, AptarGroup is 1.12 times less risky than Align Technology. The stock trades about -0.17 of its potential returns per unit of risk. The Align Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 12,843 in Align Technology on August 16, 2025 and sell it today you would earn a total of 870.00 from holding Align Technology or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptarGroup vs. Align Technology
Performance |
| Timeline |
| AptarGroup |
| Align Technology |
AptarGroup and Align Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and Align Technology
The main advantage of trading using opposite AptarGroup and Align Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Align Technology 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 Align Technology will offset losses from the drop in Align Technology's long position.| AptarGroup vs. Masimo | AptarGroup vs. Stevanato Group SpA | AptarGroup vs. Henry Schein | AptarGroup vs. Avantor |
| Align Technology vs. Qiagen NV | Align Technology vs. Globus Medical | Align Technology vs. Penumbra | Align Technology vs. The Ensign Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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