Correlation Between Apogee Enterprises and Mannatech Incorporated
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Mannatech Incorporated 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 Mannatech Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Mannatech Incorporated, you can compare the effects of market volatilities on Apogee Enterprises and Mannatech Incorporated 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 Mannatech Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Mannatech Incorporated.
Diversification Opportunities for Apogee Enterprises and Mannatech Incorporated
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apogee and Mannatech is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Mannatech Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mannatech Incorporated 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 Mannatech Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mannatech Incorporated has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Mannatech Incorporated go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Mannatech Incorporated
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 1.03 times less return on investment than Mannatech Incorporated. But when comparing it to its historical volatility, Apogee Enterprises is 2.59 times less risky than Mannatech Incorporated. It trades about 0.27 of its potential returns per unit of risk. Mannatech Incorporated is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 782.00 in Mannatech Incorporated on September 2, 2024 and sell it today you would earn a total of 68.00 from holding Mannatech Incorporated or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Apogee Enterprises vs. Mannatech Incorporated
Performance |
| Timeline |
| Apogee Enterprises |
| Mannatech Incorporated |
Apogee Enterprises and Mannatech Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Mannatech Incorporated
The main advantage of trading using opposite Apogee Enterprises and Mannatech Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Mannatech Incorporated 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 Mannatech Incorporated will offset losses from the drop in Mannatech Incorporated's 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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