Correlation Between Apogee Enterprises and WPLAU

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

By analyzing existing cross correlation between Apogee Enterprises and WPLAU 37 15 SEP 26, you can compare the effects of market volatilities on Apogee Enterprises and WPLAU 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 WPLAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and WPLAU.

Diversification Opportunities for Apogee Enterprises and WPLAU

0.74

Correlation Coefficient

Apogee Enterprises  WPLAU

Poor diversification

The 3 months correlation between Apogee and WPLAU is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and WPLAU 37 15 SEP 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WPLAU 37 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 WPLAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WPLAU 37 15 has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and WPLAU go up and down completely randomly.

Pair Corralation between Apogee Enterprises and WPLAU

Given the investment horizon of 90 days Apogee Enterprises is expected to generate 13.6 times more return on investment than WPLAU. However, Apogee Enterprises is 13.6 times more volatile than WPLAU 37 15 SEP 26. It trades about 0.05 of its potential returns per unit of risk. WPLAU 37 15 SEP 26 is currently generating about 0.03 per unit of risk. If you would invest  6,931  in Apogee Enterprises on September 19, 2024 and sell it today you would earn a total of  588.00  from holding Apogee Enterprises or generate 8.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	45.31%
Values	Daily Returns

Apogee Enterprises  vs.  WPLAU 37 15 SEP 26

Apogee Enterprises

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apogee Enterprises are ranked lower than 4 (%) 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.

WPLAU 37 15

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WPLAU 37 15 SEP 26 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, WPLAU is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Apogee Enterprises and WPLAU

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

The idea behind Apogee Enterprises and WPLAU 37 15 SEP 26 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.