Correlation Between Apogee Enterprises and Cineverse Corp

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

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

Diversification Opportunities for Apogee Enterprises and Cineverse Corp

-0.28

Correlation Coefficient

Apogee Enterprises  Cineverse Corp

Very good diversification

The 3 months correlation between Apogee and Cineverse is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Cineverse Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cineverse Corp 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 Cineverse Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cineverse Corp has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Cineverse Corp go up and down completely randomly.

Pair Corralation between Apogee Enterprises and Cineverse Corp

Given the investment horizon of 90 days Apogee Enterprises is expected to under-perform the Cineverse Corp. But the stock apears to be less risky and, when comparing its historical volatility, Apogee Enterprises is 4.77 times less risky than Cineverse Corp. The stock trades about -0.24 of its potential returns per unit of risk. The Cineverse Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  370.00  in Cineverse Corp on December 4, 2024 and sell it today you would lose (22.00) from holding Cineverse Corp or give up 5.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Apogee Enterprises  vs.  Cineverse Corp

Apogee Enterprises

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apogee Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Cineverse Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cineverse Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cineverse Corp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Apogee Enterprises and Cineverse Corp

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

The idea behind Apogee Enterprises and Cineverse Corp 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.