Correlation Between Sapiens International and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Sapiens International 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 Sapiens International and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sapiens International and Apogee Enterprises, you can compare the effects of market volatilities on Sapiens International 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 Sapiens International with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sapiens International and Apogee Enterprises.
Diversification Opportunities for Sapiens International and Apogee Enterprises
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sapiens and Apogee is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sapiens International and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Sapiens International 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 Sapiens International 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 Sapiens International i.e., Sapiens International and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Sapiens International and Apogee Enterprises
Given the investment horizon of 90 days Sapiens International is expected to generate 4.54 times less return on investment than Apogee Enterprises. In addition to that, Sapiens International is 1.05 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 4,202 in Apogee Enterprises on September 12, 2024 and sell it today you would earn a total of 3,798 from holding Apogee Enterprises or generate 90.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sapiens International vs. Apogee Enterprises
Performance |
| Timeline |
| Sapiens International |
| Apogee Enterprises |
Sapiens International and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sapiens International and Apogee Enterprises
The main advantage of trading using opposite Sapiens International and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sapiens International 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.| Sapiens International vs. Meridianlink | Sapiens International vs. Enfusion | Sapiens International vs. PDF Solutions | Sapiens International vs. ePlus inc |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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