Correlation Between Apogee Enterprises and TradeUP Acquisition
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and TradeUP Acquisition 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 TradeUP Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and TradeUP Acquisition Corp, you can compare the effects of market volatilities on Apogee Enterprises and TradeUP Acquisition 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 TradeUP Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and TradeUP Acquisition.
Diversification Opportunities for Apogee Enterprises and TradeUP Acquisition
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apogee and TradeUP is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and TradeUP Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TradeUP Acquisition Corp 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 TradeUP Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TradeUP Acquisition Corp has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and TradeUP Acquisition go up and down completely randomly.
Pair Corralation between Apogee Enterprises and TradeUP Acquisition
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 29.54 times less return on investment than TradeUP Acquisition. But when comparing it to its historical volatility, Apogee Enterprises is 11.38 times less risky than TradeUP Acquisition. It trades about 0.1 of its potential returns per unit of risk. TradeUP Acquisition Corp is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 5.29 in TradeUP Acquisition Corp on September 2, 2024 and sell it today you would earn a total of 8.71 from holding TradeUP Acquisition Corp or generate 164.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 6.45% |
| Values | Daily Returns |
Apogee Enterprises vs. TradeUP Acquisition Corp
Performance |
| Timeline |
| Apogee Enterprises |
| TradeUP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apogee Enterprises and TradeUP Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and TradeUP Acquisition
The main advantage of trading using opposite Apogee Enterprises and TradeUP Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, TradeUP Acquisition 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 TradeUP Acquisition will offset losses from the drop in TradeUP Acquisition's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| TradeUP Acquisition vs. Citi Trends | TradeUP Acquisition vs. Mediag3 | TradeUP Acquisition vs. Victorias Secret Co | TradeUP Acquisition vs. Silo Pharma |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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