Correlation Between Apogee Enterprises and Brandywine Realty
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Brandywine Realty 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 Brandywine Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Brandywine Realty Trust, you can compare the effects of market volatilities on Apogee Enterprises and Brandywine Realty 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 Brandywine Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Brandywine Realty.
Diversification Opportunities for Apogee Enterprises and Brandywine Realty
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apogee and Brandywine is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Brandywine Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandywine Realty Trust 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 Brandywine Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandywine Realty Trust has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Brandywine Realty go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Brandywine Realty
Given the investment horizon of 90 days Apogee Enterprises is expected to under-perform the Brandywine Realty. But the stock apears to be less risky and, when comparing its historical volatility, Apogee Enterprises is 1.52 times less risky than Brandywine Realty. The stock trades about -0.28 of its potential returns per unit of risk. The Brandywine Realty Trust is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 522.00 in Brandywine Realty Trust on September 13, 2024 and sell it today you would earn a total of 52.00 from holding Brandywine Realty Trust or generate 9.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. Brandywine Realty Trust
Performance |
| Timeline |
| Apogee Enterprises |
| Brandywine Realty Trust |
Apogee Enterprises and Brandywine Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Brandywine Realty
The main advantage of trading using opposite Apogee Enterprises and Brandywine Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Brandywine Realty 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 Brandywine Realty will offset losses from the drop in Brandywine Realty's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| Brandywine Realty vs. Douglas Emmett | Brandywine Realty vs. Kilroy Realty Corp | Brandywine Realty vs. Piedmont Office Realty | Brandywine Realty vs. City Office |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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