Correlation Between Apogee Enterprises and Peoples Educational
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Peoples Educational 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 Peoples Educational into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Peoples Educational Holdings, you can compare the effects of market volatilities on Apogee Enterprises and Peoples Educational 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 Peoples Educational. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Peoples Educational.
Diversification Opportunities for Apogee Enterprises and Peoples Educational
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apogee and Peoples is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Peoples Educational Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Educational 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 Peoples Educational. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Educational has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Peoples Educational go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Peoples Educational
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 46.14 times less return on investment than Peoples Educational. But when comparing it to its historical volatility, Apogee Enterprises is 22.14 times less risky than Peoples Educational. It trades about 0.03 of its potential returns per unit of risk. Peoples Educational Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Peoples Educational Holdings on November 28, 2024 and sell it today you would earn a total of 0.99 from holding Peoples Educational Holdings or generate 9900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.66% |
| Values | Daily Returns |
Apogee Enterprises vs. Peoples Educational Holdings
Performance |
| Timeline |
| Apogee Enterprises |
| Peoples Educational |
Apogee Enterprises and Peoples Educational Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Peoples Educational
The main advantage of trading using opposite Apogee Enterprises and Peoples Educational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Peoples Educational 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 Peoples Educational will offset losses from the drop in Peoples Educational'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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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