Correlation Between Green Street and Apogee Enterprises

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

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

Diversification Opportunities for Green Street and Apogee Enterprises

0.0

Correlation Coefficient

Green Street  Apogee Enterprises

Pay attention - limited upside

The 3 months correlation between Green and Apogee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Street Capital and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Green Street 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 Green Street Capital 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 Green Street i.e., Green Street and Apogee Enterprises go up and down completely randomly.

Pair Corralation between Green Street and Apogee Enterprises

If you would invest  0.02  in Green Street Capital on December 2, 2024 and sell it today you would earn a total of  0.00  from holding Green Street Capital or generate 0.0% return on investment over 90 days.

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

Green Street Capital  vs.  Apogee Enterprises

Green Street Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Green Street Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Green Street is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

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

Pair Trading with Green Street and Apogee Enterprises

The main advantage of trading using opposite Green Street and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Street 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 Green Street Capital 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.