Correlation Between Apogee Enterprises and Surf Air
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Surf Air 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 Surf Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Surf Air Mobility, you can compare the effects of market volatilities on Apogee Enterprises and Surf Air 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 Surf Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Surf Air.
Diversification Opportunities for Apogee Enterprises and Surf Air
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apogee and Surf is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Surf Air Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surf Air Mobility 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 Surf Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surf Air Mobility has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Surf Air go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Surf Air
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.18 times more return on investment than Surf Air. However, Apogee Enterprises is 5.63 times less risky than Surf Air. It trades about -0.24 of its potential returns per unit of risk. Surf Air Mobility is currently generating about -0.13 per unit of risk. If you would invest 4,948 in Apogee Enterprises on December 4, 2024 and sell it today you would lose (333.00) from holding Apogee Enterprises or give up 6.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Apogee Enterprises vs. Surf Air Mobility
Performance |
| Timeline |
| Apogee Enterprises |
| Surf Air Mobility |
Apogee Enterprises and Surf Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Surf Air
The main advantage of trading using opposite Apogee Enterprises and Surf Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Surf Air 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 Surf Air will offset losses from the drop in Surf Air's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| Surf Air vs. Inflection Point Acquisition | Surf Air vs. Levi Strauss Co | Surf Air vs. EastGroup Properties | Surf Air vs. MGIC Investment Corp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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