Correlation Between Apogee Enterprises and Femasys
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Femasys 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 Femasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Femasys, you can compare the effects of market volatilities on Apogee Enterprises and Femasys 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 Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Femasys.
Diversification Opportunities for Apogee Enterprises and Femasys
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apogee and Femasys is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys 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 Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Femasys go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Femasys
Given the investment horizon of 90 days Apogee Enterprises is expected to under-perform the Femasys. But the stock apears to be less risky and, when comparing its historical volatility, Apogee Enterprises is 3.91 times less risky than Femasys. The stock trades about -0.33 of its potential returns per unit of risk. The Femasys is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 105.00 in Femasys on November 29, 2024 and sell it today you would earn a total of 60.00 from holding Femasys or generate 57.14% 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. Femasys
Performance |
| Timeline |
| Apogee Enterprises |
| Femasys |
Apogee Enterprises and Femasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Femasys
The main advantage of trading using opposite Apogee Enterprises and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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