Correlation Between Roku and Apogee Opportunities
Can any of the company-specific risk be diversified away by investing in both Roku and Apogee Opportunities 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 Roku and Apogee Opportunities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roku Inc and Apogee Opportunities, you can compare the effects of market volatilities on Roku and Apogee Opportunities 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 Roku with a short position of Apogee Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roku and Apogee Opportunities.
Diversification Opportunities for Roku and Apogee Opportunities
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Roku and Apogee is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Roku Inc and Apogee Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Opportunities and Roku 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 Roku Inc are associated (or correlated) with Apogee Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Opportunities has no effect on the direction of Roku i.e., Roku and Apogee Opportunities go up and down completely randomly.
Pair Corralation between Roku and Apogee Opportunities
Given the investment horizon of 90 days Roku is expected to generate 6.69 times less return on investment than Apogee Opportunities. But when comparing it to its historical volatility, Roku Inc is 2.2 times less risky than Apogee Opportunities. It trades about 0.03 of its potential returns per unit of risk. Apogee Opportunities is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Apogee Opportunities on August 23, 2024 and sell it today you would earn a total of 80.00 from holding Apogee Opportunities or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 32.06% |
| Values | Daily Returns |
Roku Inc vs. Apogee Opportunities
Performance |
| Timeline |
| Roku Inc |
| Apogee Opportunities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Roku and Apogee Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roku and Apogee Opportunities
The main advantage of trading using opposite Roku and Apogee Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roku position performs unexpectedly, Apogee Opportunities 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 Opportunities will offset losses from the drop in Apogee Opportunities' long position.| Roku vs. Walt Disney | Roku vs. AMC Entertainment Holdings | Roku vs. Paramount Global Class | Roku vs. Warner Bros Discovery |
| Apogee Opportunities vs. Netflix | Apogee Opportunities vs. Walt Disney | Apogee Opportunities vs. Roku Inc | Apogee Opportunities vs. Paramount Global Class |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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