Correlation Between AptarGroup and Sensient Technologies
Can any of the company-specific risk be diversified away by investing in both AptarGroup and Sensient Technologies 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 Sensient Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptarGroup and Sensient Technologies, you can compare the effects of market volatilities on AptarGroup and Sensient Technologies 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 Sensient Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Sensient Technologies.
Diversification Opportunities for AptarGroup and Sensient Technologies
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AptarGroup and Sensient is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and Sensient Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensient Technologies 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 Sensient Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensient Technologies has no effect on the direction of AptarGroup i.e., AptarGroup and Sensient Technologies go up and down completely randomly.
Pair Corralation between AptarGroup and Sensient Technologies
Considering the 90-day investment horizon AptarGroup is expected to under-perform the Sensient Technologies. In addition to that, AptarGroup is 1.16 times more volatile than Sensient Technologies. It trades about -0.11 of its total potential returns per unit of risk. Sensient Technologies is currently generating about 0.2 per unit of volatility. If you would invest 9,568 in Sensient Technologies on June 5, 2025 and sell it today you would earn a total of 1,746 from holding Sensient Technologies or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptarGroup vs. Sensient Technologies
Performance |
| Timeline |
| AptarGroup |
| Sensient Technologies |
AptarGroup and Sensient Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptarGroup and Sensient Technologies
The main advantage of trading using opposite AptarGroup and Sensient Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Sensient Technologies 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 Sensient Technologies will offset losses from the drop in Sensient Technologies' long position.| AptarGroup vs. ICU Medical | AptarGroup vs. AngioDynamics | AptarGroup vs. Haemonetics | AptarGroup vs. The Cooper Companies, |
| Sensient Technologies vs. Core Molding Technologies | Sensient Technologies vs. Neo Performance Materials | Sensient Technologies vs. Avient Corp | Sensient Technologies vs. SPAR 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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