Correlation Between Apogee Enterprises and Janus International

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

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

Diversification Opportunities for Apogee Enterprises and Janus International

-0.55

Correlation Coefficient

Apogee Enterprises  Janus International

Excellent diversification

The 3 months correlation between Apogee and Janus is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Janus International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus International 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 Janus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus International has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Janus International go up and down completely randomly.

Pair Corralation between Apogee Enterprises and Janus International

Given the investment horizon of 90 days Apogee Enterprises is expected to under-perform the Janus International. In addition to that, Apogee Enterprises is 1.28 times more volatile than Janus International Group. It trades about -0.28 of its total potential returns per unit of risk. Janus International Group is currently generating about 0.06 per unit of volatility. If you would invest  748.00  in Janus International Group on November 28, 2024 and sell it today you would earn a total of  58.00  from holding Janus International Group or generate 7.75% return on investment over 90 days.

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

Apogee Enterprises  vs.  Janus International Group

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 March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Janus International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Janus International Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental drivers, Janus International may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Apogee Enterprises and Janus International

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

The idea behind Apogee Enterprises and Janus International Group 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.