Correlation Between Apogee Enterprises and Green Street
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Green Street 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 Green Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Green Street Capital, you can compare the effects of market volatilities on Apogee Enterprises and Green Street 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 Green Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Green Street.
Diversification Opportunities for Apogee Enterprises and Green Street
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apogee and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Green Street Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Street Capital 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 Green Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Street Capital has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Green Street go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Green Street
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.42 times more return on investment than Green Street. However, Apogee Enterprises is 2.39 times less risky than Green Street. It trades about 0.09 of its potential returns per unit of risk. Green Street Capital is currently generating about -0.05 per unit of risk. If you would invest 4,548 in Apogee Enterprises on September 12, 2024 and sell it today you would earn a total of 3,452 from holding Apogee Enterprises or generate 75.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. Green Street Capital
Performance |
| Timeline |
| Apogee Enterprises |
| Green Street Capital |
Apogee Enterprises and Green Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Green Street
The main advantage of trading using opposite Apogee Enterprises and Green Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Green Street 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 Green Street will offset losses from the drop in Green Street's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| Green Street vs. Apogee Enterprises | Green Street vs. Electronic Arts | Green Street vs. Academy Sports Outdoors | Green Street vs. Sun Country Airlines |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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