Correlation Between Acme United and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Acme United 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 Acme United and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acme United and Apogee Enterprises, you can compare the effects of market volatilities on Acme United 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 Acme United with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acme United and Apogee Enterprises.
Diversification Opportunities for Acme United and Apogee Enterprises
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acme and Apogee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acme United and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Acme United 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 Acme United 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 Acme United i.e., Acme United and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Acme United and Apogee Enterprises
Considering the 90-day investment horizon Acme United is expected to generate 0.99 times more return on investment than Apogee Enterprises. However, Acme United is 1.01 times less risky than Apogee Enterprises. It trades about 0.3 of its potential returns per unit of risk. Apogee Enterprises is currently generating about 0.27 per unit of risk. If you would invest 3,966 in Acme United on September 2, 2024 and sell it today you would earn a total of 485.00 from holding Acme United or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acme United vs. Apogee Enterprises
Performance |
| Timeline |
| Acme United |
| Apogee Enterprises |
Acme United and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acme United and Apogee Enterprises
The main advantage of trading using opposite Acme United and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acme United 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.| Acme United vs. Mannatech Incorporated | Acme United vs. European Wax Center | Acme United vs. Inter Parfums | Acme United vs. Spectrum Brands Holdings |
| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
Check out your portfolio center.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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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