Correlation Between Apogee Enterprises and Sun Country
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Sun Country 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 Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Sun Country Airlines, you can compare the effects of market volatilities on Apogee Enterprises and Sun Country 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 Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Sun Country.
Diversification Opportunities for Apogee Enterprises and Sun Country
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apogee and Sun is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines 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 Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Sun Country go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Sun Country
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.66 times more return on investment than Sun Country. However, Apogee Enterprises is 1.52 times less risky than Sun Country. It trades about 0.09 of its potential returns per unit of risk. Sun Country Airlines is currently generating about -0.02 per unit of risk. If you would invest 4,580 in Apogee Enterprises on August 28, 2024 and sell it today you would earn a total of 3,907 from holding Apogee Enterprises or generate 85.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. Sun Country Airlines
Performance |
| Timeline |
| Apogee Enterprises |
| Sun Country Airlines |
Apogee Enterprises and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Sun Country
The main advantage of trading using opposite Apogee Enterprises and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Sun Country 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 Sun Country will offset losses from the drop in Sun Country's long position.| Apogee Enterprises vs. Trex Company | Apogee Enterprises vs. Travis Perkins PLC | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface |
| Sun Country vs. Spirit Airlines | Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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