Correlation Between Coupang LLC and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Coupang LLC 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 Coupang LLC and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Apogee Enterprises, you can compare the effects of market volatilities on Coupang LLC 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 Coupang LLC with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Apogee Enterprises.
Diversification Opportunities for Coupang LLC and Apogee Enterprises
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coupang and Apogee is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Coupang LLC 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 Coupang LLC 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 Coupang LLC i.e., Coupang LLC and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Coupang LLC and Apogee Enterprises
Given the investment horizon of 90 days Coupang LLC is expected to generate 0.91 times more return on investment than Apogee Enterprises. However, Coupang LLC is 1.1 times less risky than Apogee Enterprises. It trades about 0.43 of its potential returns per unit of risk. Apogee Enterprises is currently generating about -0.3 per unit of risk. If you would invest 2,206 in Coupang LLC on November 18, 2024 and sell it today you would earn a total of 328.00 from holding Coupang LLC or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. Apogee Enterprises
Performance |
| Timeline |
| Coupang LLC |
| Apogee Enterprises |
Coupang LLC and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Apogee Enterprises
The main advantage of trading using opposite Coupang LLC and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC 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.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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