Correlation Between Neogen and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Neogen 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 Neogen and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogen and Apogee Enterprises, you can compare the effects of market volatilities on Neogen 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 Neogen with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogen and Apogee Enterprises.
Diversification Opportunities for Neogen and Apogee Enterprises
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neogen and Apogee is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Neogen and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Neogen 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 Neogen 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 Neogen i.e., Neogen and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Neogen and Apogee Enterprises
Given the investment horizon of 90 days Neogen is expected to generate 3.8 times less return on investment than Apogee Enterprises. In addition to that, Neogen is 1.04 times more volatile than Apogee Enterprises. It trades about 0.02 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 6,286 in Apogee Enterprises on August 30, 2024 and sell it today you would earn a total of 2,092 from holding Apogee Enterprises or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neogen vs. Apogee Enterprises
Performance |
| Timeline |
| Neogen |
| Apogee Enterprises |
Neogen and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogen and Apogee Enterprises
The main advantage of trading using opposite Neogen and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogen 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.| Neogen vs. ReShape Lifesciences | Neogen vs. Bone Biologics Corp | Neogen vs. Tivic Health Systems | Neogen vs. Nuwellis |
| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Azek Company | Apogee Enterprises vs. Armstrong World Industries |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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