Correlation Between Scholastic and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Scholastic 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 Scholastic and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scholastic and Apogee Enterprises, you can compare the effects of market volatilities on Scholastic 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 Scholastic with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scholastic and Apogee Enterprises.
Diversification Opportunities for Scholastic and Apogee Enterprises
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scholastic and Apogee is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Scholastic and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Scholastic 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 Scholastic 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 Scholastic i.e., Scholastic and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Scholastic and Apogee Enterprises
Given the investment horizon of 90 days Scholastic is expected to generate 1.75 times less return on investment than Apogee Enterprises. In addition to that, Scholastic is 1.38 times more volatile than Apogee Enterprises. It trades about 0.1 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 7,584 in Apogee Enterprises on August 30, 2024 and sell it today you would earn a total of 794.00 from holding Apogee Enterprises or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scholastic vs. Apogee Enterprises
Performance |
| Timeline |
| Scholastic |
| Apogee Enterprises |
Scholastic and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scholastic and Apogee Enterprises
The main advantage of trading using opposite Scholastic and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scholastic 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.| Scholastic vs. New York Times | Scholastic vs. Gannett Co | Scholastic vs. Lee Enterprises Incorporated | Scholastic vs. Pearson PLC ADR |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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