Correlation Between Apogee Enterprises and TENCNT
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By analyzing existing cross correlation between Apogee Enterprises and TENCNT 324 03 JUN 50, you can compare the effects of market volatilities on Apogee Enterprises and TENCNT 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 TENCNT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and TENCNT.
Diversification Opportunities for Apogee Enterprises and TENCNT
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apogee and TENCNT is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and TENCNT 324 03 JUN 50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TENCNT 324 03 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 TENCNT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TENCNT 324 03 has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and TENCNT go up and down completely randomly.
Pair Corralation between Apogee Enterprises and TENCNT
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.59 times more return on investment than TENCNT. However, Apogee Enterprises is 1.68 times less risky than TENCNT. It trades about 0.25 of its potential returns per unit of risk. TENCNT 324 03 JUN 50 is currently generating about -0.1 per unit of risk. If you would invest 7,586 in Apogee Enterprises on August 31, 2024 and sell it today you would earn a total of 835.00 from holding Apogee Enterprises or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 47.83% |
| Values | Daily Returns |
Apogee Enterprises vs. TENCNT 324 03 JUN 50
Performance |
| Timeline |
| Apogee Enterprises |
| TENCNT 324 03 |
Apogee Enterprises and TENCNT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and TENCNT
The main advantage of trading using opposite Apogee Enterprises and TENCNT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, TENCNT 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 TENCNT will offset losses from the drop in TENCNT's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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