Correlation Between Apogee Enterprises and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and RCS MediaGroup 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 RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and RCS MediaGroup SpA, you can compare the effects of market volatilities on Apogee Enterprises and RCS MediaGroup 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 RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and RCS MediaGroup.
Diversification Opportunities for Apogee Enterprises and RCS MediaGroup
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apogee and RCS is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and RCS MediaGroup SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCS MediaGroup SpA 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 RCS MediaGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCS MediaGroup SpA has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and RCS MediaGroup go up and down completely randomly.
Pair Corralation between Apogee Enterprises and RCS MediaGroup
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 3.24 times more return on investment than RCS MediaGroup. However, Apogee Enterprises is 3.24 times more volatile than RCS MediaGroup SpA. It trades about 0.27 of its potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.37 per unit of risk. If you would invest 7,580 in Apogee Enterprises on September 2, 2024 and sell it today you would earn a total of 841.00 from holding Apogee Enterprises or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. RCS MediaGroup SpA
Performance |
| Timeline |
| Apogee Enterprises |
| RCS MediaGroup SpA |
Apogee Enterprises and RCS MediaGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and RCS MediaGroup
The main advantage of trading using opposite Apogee Enterprises and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, RCS MediaGroup 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 RCS MediaGroup will offset losses from the drop in RCS MediaGroup's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| RCS MediaGroup vs. Slate Office REIT | RCS MediaGroup vs. HUMANA INC | RCS MediaGroup vs. Aquagold International | RCS MediaGroup vs. Barloworld Ltd ADR |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |