Correlation Between Apogee Enterprises and Fluent

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

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

Diversification Opportunities for Apogee Enterprises and Fluent

-0.56

Correlation Coefficient

Apogee Enterprises  Fluent

Excellent diversification

The 3 months correlation between Apogee and Fluent is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Fluent go up and down completely randomly.

Pair Corralation between Apogee Enterprises and Fluent

Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.45 times more return on investment than Fluent. However, Apogee Enterprises is 2.21 times less risky than Fluent. It trades about -0.07 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.06 per unit of risk. If you would invest  7,669  in Apogee Enterprises on September 27, 2024 and sell it today you would lose (428.50) from holding Apogee Enterprises or give up 5.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Apogee Enterprises  vs.  Fluent Inc

Apogee Enterprises

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apogee Enterprises are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Apogee Enterprises may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Fluent Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fluent Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Apogee Enterprises and Fluent

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

The idea behind Apogee Enterprises and Fluent Inc 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.