Correlation Between Apogee Enterprises and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Doubledown Interactive 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 Doubledown Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Doubledown Interactive Co, you can compare the effects of market volatilities on Apogee Enterprises and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Doubledown Interactive.
Diversification Opportunities for Apogee Enterprises and Doubledown Interactive
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apogee and Doubledown is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Doubledown Interactive go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Doubledown Interactive
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.54 times more return on investment than Doubledown Interactive. However, Apogee Enterprises is 1.85 times less risky than Doubledown Interactive. It trades about 0.07 of its potential returns per unit of risk. Doubledown Interactive Co is currently generating about 0.04 per unit of risk. If you would invest 4,535 in Apogee Enterprises on September 1, 2024 and sell it today you would earn a total of 3,886 from holding Apogee Enterprises or generate 85.69% 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. Doubledown Interactive Co
Performance |
| Timeline |
| Apogee Enterprises |
| Doubledown Interactive |
Apogee Enterprises and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Doubledown Interactive
The main advantage of trading using opposite Apogee Enterprises and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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