Correlation Between Apogee Enterprises and Neogen
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Neogen 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 Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Neogen, you can compare the effects of market volatilities on Apogee Enterprises and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Neogen.
Diversification Opportunities for Apogee Enterprises and Neogen
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apogee and Neogen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Neogen go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Neogen
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.96 times more return on investment than Neogen. However, Apogee Enterprises is 1.04 times less risky than Neogen. It trades about 0.09 of its potential returns per unit of risk. Neogen is currently generating about 0.02 per unit of risk. If you would invest 6,286 in Apogee Enterprises on August 30, 2024 and sell it today you would earn a total of 2,092 from holding Apogee Enterprises or generate 33.28% 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. Neogen
Performance |
| Timeline |
| Apogee Enterprises |
| Neogen |
Apogee Enterprises and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Neogen
The main advantage of trading using opposite Apogee Enterprises and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Azek Company | Apogee Enterprises vs. Armstrong World Industries |
| Neogen vs. ReShape Lifesciences | Neogen vs. Bone Biologics Corp | Neogen vs. Tivic Health Systems | Neogen vs. Nuwellis |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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