Correlation Between Apogee Enterprises and Treasury Wine
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Treasury Wine 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 Treasury Wine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Treasury Wine Estates, you can compare the effects of market volatilities on Apogee Enterprises and Treasury Wine 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 Treasury Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Treasury Wine.
Diversification Opportunities for Apogee Enterprises and Treasury Wine
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apogee and Treasury is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Treasury Wine Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treasury Wine Estates 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 Treasury Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treasury Wine Estates has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Treasury Wine go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Treasury Wine
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 1.34 times more return on investment than Treasury Wine. However, Apogee Enterprises is 1.34 times more volatile than Treasury Wine Estates. It trades about 0.08 of its potential returns per unit of risk. Treasury Wine Estates is currently generating about -0.03 per unit of risk. If you would invest 6,157 in Apogee Enterprises on September 13, 2024 and sell it today you would earn a total of 1,796 from holding Apogee Enterprises or generate 29.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Apogee Enterprises vs. Treasury Wine Estates
Performance |
| Timeline |
| Apogee Enterprises |
| Treasury Wine Estates |
Apogee Enterprises and Treasury Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Treasury Wine
The main advantage of trading using opposite Apogee Enterprises and Treasury Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Treasury Wine 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 Treasury Wine will offset losses from the drop in Treasury Wine's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| Treasury Wine vs. Pernod Ricard SA | Treasury Wine vs. Willamette Valley Vineyards | Treasury Wine vs. MGP Ingredients | Treasury Wine vs. Duckhorn Portfolio |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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