Correlation Between Apogee Enterprises and Hafnia
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Hafnia 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 Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Hafnia Limited, you can compare the effects of market volatilities on Apogee Enterprises and Hafnia 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 Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Hafnia.
Diversification Opportunities for Apogee Enterprises and Hafnia
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apogee and Hafnia is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited 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 Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia Limited has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Hafnia go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Hafnia
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 1.3 times more return on investment than Hafnia. However, Apogee Enterprises is 1.3 times more volatile than Hafnia Limited. It trades about 0.09 of its potential returns per unit of risk. Hafnia Limited is currently generating about -0.06 per unit of risk. If you would invest 6,134 in Apogee Enterprises on September 12, 2024 and sell it today you would earn a total of 1,866 from holding Apogee Enterprises or generate 30.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. Hafnia Limited
Performance |
| Timeline |
| Apogee Enterprises |
| Hafnia Limited |
Apogee Enterprises and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Hafnia
The main advantage of trading using opposite Apogee Enterprises and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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