Correlation Between Apogee Enterprises and Elicio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Elicio Therapeutics 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 Elicio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Elicio Therapeutics, you can compare the effects of market volatilities on Apogee Enterprises and Elicio Therapeutics 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 Elicio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Elicio Therapeutics.
Diversification Opportunities for Apogee Enterprises and Elicio Therapeutics
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apogee and Elicio is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Elicio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elicio Therapeutics 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 Elicio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elicio Therapeutics has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Elicio Therapeutics go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Elicio Therapeutics
Given the investment horizon of 90 days Apogee Enterprises is expected to under-perform the Elicio Therapeutics. In addition to that, Apogee Enterprises is 1.29 times more volatile than Elicio Therapeutics. It trades about -0.19 of its total potential returns per unit of risk. Elicio Therapeutics is currently generating about 0.31 per unit of volatility. If you would invest 503.00 in Elicio Therapeutics on October 24, 2024 and sell it today you would earn a total of 122.00 from holding Elicio Therapeutics or generate 24.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. Elicio Therapeutics
Performance |
| Timeline |
| Apogee Enterprises |
| Elicio Therapeutics |
Apogee Enterprises and Elicio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Elicio Therapeutics
The main advantage of trading using opposite Apogee Enterprises and Elicio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Elicio Therapeutics 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 Elicio Therapeutics will offset losses from the drop in Elicio Therapeutics' long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| Elicio Therapeutics vs. Siriuspoint | Elicio Therapeutics vs. Goosehead Insurance | Elicio Therapeutics vs. ScanSource | Elicio Therapeutics vs. Constellation Brands Class |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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