Correlation Between Brandywine Realty and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Brandywine Realty and Apogee Enterprises 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 Brandywine Realty and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brandywine Realty Trust and Apogee Enterprises, you can compare the effects of market volatilities on Brandywine Realty and Apogee Enterprises 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 Brandywine Realty with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywine Realty and Apogee Enterprises.
Diversification Opportunities for Brandywine Realty and Apogee Enterprises
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brandywine and Apogee is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Brandywine Realty Trust and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Brandywine Realty 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 Brandywine Realty Trust are associated (or correlated) with Apogee Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Enterprises has no effect on the direction of Brandywine Realty i.e., Brandywine Realty and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Brandywine Realty and Apogee Enterprises
Considering the 90-day investment horizon Brandywine Realty is expected to generate 1.41 times less return on investment than Apogee Enterprises. In addition to that, Brandywine Realty is 1.27 times more volatile than Apogee Enterprises. It trades about 0.05 of its total potential returns per unit of risk. Apogee Enterprises is currently generating about 0.09 per unit of volatility. If you would invest 4,548 in Apogee Enterprises on September 12, 2024 and sell it today you would earn a total of 3,452 from holding Apogee Enterprises or generate 75.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brandywine Realty Trust vs. Apogee Enterprises
Performance |
| Timeline |
| Brandywine Realty Trust |
| Apogee Enterprises |
Brandywine Realty and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandywine Realty and Apogee Enterprises
The main advantage of trading using opposite Brandywine Realty and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywine Realty position performs unexpectedly, Apogee Enterprises 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 Apogee Enterprises will offset losses from the drop in Apogee Enterprises' long position.| Brandywine Realty vs. Douglas Emmett | Brandywine Realty vs. Kilroy Realty Corp | Brandywine Realty vs. Piedmont Office Realty | Brandywine Realty vs. City Office |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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