Correlation Between Apogee Enterprises and AdTheorent Holding

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

By analyzing existing cross correlation between Apogee Enterprises and AdTheorent Holding, you can compare the effects of market volatilities on Apogee Enterprises and AdTheorent Holding 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 Apogee Enterprises with a short position of AdTheorent Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and AdTheorent Holding.

Diversification Opportunities for Apogee Enterprises and AdTheorent Holding

0.0

Correlation Coefficient

Apogee Enterprises  AdTheorent Holding

Pay attention - limited upside

The 3 months correlation between Apogee and AdTheorent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and AdTheorent Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdTheorent Holding and Apogee Enterprises 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 Apogee Enterprises are associated (or correlated) with AdTheorent Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdTheorent Holding has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and AdTheorent Holding go up and down completely randomly.

Pair Corralation between Apogee Enterprises and AdTheorent Holding

If you would invest  5,818  in Apogee Enterprises on October 7, 2024 and sell it today you would earn a total of  1,372  from holding Apogee Enterprises or generate 23.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.79%
Values	Daily Returns

Apogee Enterprises  vs.  AdTheorent Holding

Apogee Enterprises

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apogee Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

AdTheorent Holding

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Apogee Enterprises and AdTheorent Holding

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

The idea behind Apogee Enterprises and AdTheorent Holding 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.