Correlation Between Ivanhoe Electric and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Electric 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 Ivanhoe Electric and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Electric and Apogee Enterprises, you can compare the effects of market volatilities on Ivanhoe Electric 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 Ivanhoe Electric with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Electric and Apogee Enterprises.
Diversification Opportunities for Ivanhoe Electric and Apogee Enterprises
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ivanhoe and Apogee is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Electric and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Ivanhoe Electric 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 Ivanhoe Electric 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 Ivanhoe Electric i.e., Ivanhoe Electric and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Ivanhoe Electric and Apogee Enterprises
Allowing for the 90-day total investment horizon Ivanhoe Electric is expected to under-perform the Apogee Enterprises. In addition to that, Ivanhoe Electric is 1.62 times more volatile than Apogee Enterprises. It trades about -0.16 of its total potential returns per unit of risk. Apogee Enterprises is currently generating about 0.24 per unit of volatility. If you would invest 7,495 in Apogee Enterprises on August 24, 2024 and sell it today you would earn a total of 781.50 from holding Apogee Enterprises or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivanhoe Electric vs. Apogee Enterprises
Performance |
| Timeline |
| Ivanhoe Electric |
| Apogee Enterprises |
Ivanhoe Electric and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivanhoe Electric and Apogee Enterprises
The main advantage of trading using opposite Ivanhoe Electric and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Electric 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.| Ivanhoe Electric vs. Upper Street Marketing | Ivanhoe Electric vs. Grocery Outlet Holding | Ivanhoe Electric vs. Lululemon Athletica | Ivanhoe Electric vs. Asbury Automotive Group |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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