Correlation Between Cirmaker Technology and Apogee Enterprises

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

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

Diversification Opportunities for Cirmaker Technology and Apogee Enterprises

-0.37

Correlation Coefficient

Cirmaker Technology  Apogee Enterprises

Very good diversification

The 3 months correlation between Cirmaker and Apogee is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cirmaker Technology and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Cirmaker Technology 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 Cirmaker Technology are associated (or correlated) with Apogee Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Enterprises has no effect on the direction of Cirmaker Technology i.e., Cirmaker Technology and Apogee Enterprises go up and down completely randomly.

Pair Corralation between Cirmaker Technology and Apogee Enterprises

Given the investment horizon of 90 days Cirmaker Technology is expected to generate 2.46 times more return on investment than Apogee Enterprises. However, Cirmaker Technology is 2.46 times more volatile than Apogee Enterprises. It trades about -0.02 of its potential returns per unit of risk. Apogee Enterprises is currently generating about -0.08 per unit of risk. If you would invest  6.00  in Cirmaker Technology on October 6, 2024 and sell it today you would lose (0.60) from holding Cirmaker Technology or give up 10.0% of portfolio value over 90 days.

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

Cirmaker Technology  vs.  Apogee Enterprises

Cirmaker Technology

Risk-Adjusted Performance

0 of 100

Very Weak

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

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 latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Cirmaker Technology and Apogee Enterprises

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

The idea behind Cirmaker Technology and Apogee Enterprises 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.