Correlation Between Apogee Enterprises and Zeo Energy
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and Zeo Energy 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 Zeo Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and Zeo Energy Corp, you can compare the effects of market volatilities on Apogee Enterprises and Zeo Energy 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 Zeo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Zeo Energy.
Diversification Opportunities for Apogee Enterprises and Zeo Energy
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apogee and Zeo is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Zeo Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zeo Energy 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 Zeo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zeo Energy Corp has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and Zeo Energy go up and down completely randomly.
Pair Corralation between Apogee Enterprises and Zeo Energy
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.19 times more return on investment than Zeo Energy. However, Apogee Enterprises is 5.16 times less risky than Zeo Energy. It trades about 0.14 of its potential returns per unit of risk. Zeo Energy Corp is currently generating about 0.02 per unit of risk. If you would invest 6,522 in Apogee Enterprises on August 28, 2024 and sell it today you would earn a total of 1,965 from holding Apogee Enterprises or generate 30.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. Zeo Energy Corp
Performance |
| Timeline |
| Apogee Enterprises |
| Zeo Energy Corp |
Apogee Enterprises and Zeo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and Zeo Energy
The main advantage of trading using opposite Apogee Enterprises and Zeo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, Zeo Energy 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 Zeo Energy will offset losses from the drop in Zeo Energy's long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| Zeo Energy vs. 1847 Holdings LLC | Zeo Energy vs. Westport Fuel Systems | Zeo Energy vs. Falcons Beyond Global, | Zeo Energy vs. Brookfield Business Partners |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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