Correlation Between Apogee Enterprises and First Republic
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and First Republic 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 First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and First Republic Bank, you can compare the effects of market volatilities on Apogee Enterprises and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and First Republic.
Diversification Opportunities for Apogee Enterprises and First Republic
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apogee and First is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and First Republic go up and down completely randomly.
Pair Corralation between Apogee Enterprises and First Republic
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.07 times more return on investment than First Republic. However, Apogee Enterprises is 14.65 times less risky than First Republic. It trades about 0.07 of its potential returns per unit of risk. First Republic Bank is currently generating about -0.04 per unit of risk. If you would invest 4,474 in Apogee Enterprises on September 2, 2024 and sell it today you would earn a total of 3,947 from holding Apogee Enterprises or generate 88.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.05% |
| Values | Daily Returns |
Apogee Enterprises vs. First Republic Bank
Performance |
| Timeline |
| Apogee Enterprises |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apogee Enterprises and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and First Republic
The main advantage of trading using opposite Apogee Enterprises and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| First Republic vs. Bassett Furniture Industries | First Republic vs. Apogee Enterprises | First Republic vs. Mid Atlantic Home Health | First Republic vs. Franklin Street Properties |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |