Correlation Between Apogee Enterprises and U-Haul Holding
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and U-Haul Holding 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 U-Haul Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and U Haul Holding, you can compare the effects of market volatilities on Apogee Enterprises and U-Haul Holding 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 U-Haul Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and U-Haul Holding.
Diversification Opportunities for Apogee Enterprises and U-Haul Holding
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apogee and U-Haul is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding 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 U-Haul Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and U-Haul Holding go up and down completely randomly.
Pair Corralation between Apogee Enterprises and U-Haul Holding
Given the investment horizon of 90 days Apogee Enterprises is expected to under-perform the U-Haul Holding. In addition to that, Apogee Enterprises is 3.02 times more volatile than U Haul Holding. It trades about -0.24 of its total potential returns per unit of risk. U Haul Holding is currently generating about 0.02 per unit of volatility. If you would invest 6,376 in U Haul Holding on November 28, 2024 and sell it today you would earn a total of 39.00 from holding U Haul Holding or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. U Haul Holding
Performance |
| Timeline |
| Apogee Enterprises |
| U Haul Holding |
Apogee Enterprises and U-Haul Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and U-Haul Holding
The main advantage of trading using opposite Apogee Enterprises and U-Haul Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, U-Haul Holding 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 U-Haul Holding will offset losses from the drop in U-Haul Holding'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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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