Correlation Between Apogee Enterprises and Definitive Healthcare
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Definitive Healthcare 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 Definitive Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Definitive Healthcare Corp, you can compare the effects of market volatilities on Apogee Enterprises and Definitive Healthcare 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 Definitive Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Definitive Healthcare.
Diversification Opportunities for Apogee Enterprises and Definitive Healthcare
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apogee and Definitive is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Definitive Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Definitive Healthcare 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 Definitive Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Definitive Healthcare has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Definitive Healthcare go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Definitive Healthcare
Given the investment horizon of 90 days Apogee Enterprises is expected to under-perform the Definitive Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Apogee Enterprises is 2.13 times less risky than Definitive Healthcare. The stock trades about -0.31 of its potential returns per unit of risk. The Definitive Healthcare Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 440.00 in Definitive Healthcare Corp on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Definitive Healthcare Corp or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. Definitive Healthcare Corp
Performance |
| Timeline |
| Apogee Enterprises |
| Definitive Healthcare |
Apogee Enterprises and Definitive Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Definitive Healthcare
The main advantage of trading using opposite Apogee Enterprises and Definitive Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Definitive Healthcare 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 Definitive Healthcare will offset losses from the drop in Definitive Healthcare's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| Definitive Healthcare vs. National Research Corp | Definitive Healthcare vs. Evolent Health | Definitive Healthcare vs. Simulations Plus | Definitive Healthcare vs. Privia Health Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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