Correlation Between Canlan Ice and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Apogee Enterprises, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Apogee Enterprises.
Diversification Opportunities for Canlan Ice and Apogee Enterprises
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Canlan and Apogee is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Canlan Ice and Apogee Enterprises
Assuming the 90 days horizon Canlan Ice is expected to generate 10.77 times less return on investment than Apogee Enterprises. But when comparing it to its historical volatility, Canlan Ice Sports is 19.66 times less risky than Apogee Enterprises. It trades about 0.13 of its potential returns per unit of risk. Apogee Enterprises is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,457 in Apogee Enterprises on August 29, 2024 and sell it today you would earn a total of 4,062 from holding Apogee Enterprises or generate 91.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Apogee Enterprises
Performance |
| Timeline |
| Canlan Ice Sports |
| Apogee Enterprises |
Canlan Ice and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Apogee Enterprises
The main advantage of trading using opposite Canlan Ice and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. Mind Technology | Canlan Ice vs. KVH Industries | Canlan Ice vs. Nextnav Acquisition Corp | Canlan Ice vs. Marfrig Global Foods |
| Apogee Enterprises vs. Trex Company | Apogee Enterprises vs. Travis Perkins PLC | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |