Correlation Between Apogee Enterprises and 020002AJ0

Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and 020002AJ0 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 020002AJ0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apogee Enterprises and ALL 69 15 MAY 38, you can compare the effects of market volatilities on Apogee Enterprises and 020002AJ0 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 020002AJ0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and 020002AJ0.

Diversification Opportunities for Apogee Enterprises and 020002AJ0

0.43

Correlation Coefficient

Apogee Enterprises  020002AJ0

Very weak diversification

The 3 months correlation between Apogee and 020002AJ0 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and ALL 69 15 MAY 38 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALL 69 15 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 020002AJ0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALL 69 15 has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and 020002AJ0 go up and down completely randomly.

Pair Corralation between Apogee Enterprises and 020002AJ0

Given the investment horizon of 90 days Apogee Enterprises is expected to under-perform the 020002AJ0. In addition to that, Apogee Enterprises is 1.02 times more volatile than ALL 69 15 MAY 38. It trades about -0.13 of its total potential returns per unit of risk. ALL 69 15 MAY 38 is currently generating about 0.04 per unit of volatility. If you would invest  11,479  in ALL 69 15 MAY 38 on October 23, 2024 and sell it today you would earn a total of  296.00  from holding ALL 69 15 MAY 38 or generate 2.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	60.0%
Values	Daily Returns

Apogee Enterprises  vs.  ALL 69 15 MAY 38

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 weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ALL 69 15

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ALL 69 15 MAY 38 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, 020002AJ0 may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Apogee Enterprises and 020002AJ0

The main advantage of trading using opposite Apogee Enterprises and 020002AJ0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, 020002AJ0 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 020002AJ0 will offset losses from the drop in 020002AJ0's long position.

The idea behind Apogee Enterprises and ALL 69 15 MAY 38 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.