Correlation Between AMERICAN and Apogee Enterprises
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By analyzing existing cross correlation between AMERICAN EXPRESS PANY and Apogee Enterprises, you can compare the effects of market volatilities on AMERICAN 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 AMERICAN with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMERICAN and Apogee Enterprises.
Diversification Opportunities for AMERICAN and Apogee Enterprises
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMERICAN and Apogee is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding AMERICAN EXPRESS PANY and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and AMERICAN 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 AMERICAN EXPRESS PANY 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 AMERICAN i.e., AMERICAN and Apogee Enterprises go up and down completely randomly.
Pair Corralation between AMERICAN and Apogee Enterprises
Assuming the 90 days trading horizon AMERICAN is expected to generate 33.18 times less return on investment than Apogee Enterprises. But when comparing it to its historical volatility, AMERICAN EXPRESS PANY is 7.91 times less risky than Apogee Enterprises. It trades about 0.02 of its potential returns per unit of risk. Apogee Enterprises is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,548 in Apogee Enterprises on September 12, 2024 and sell it today you would earn a total of 3,452 from holding Apogee Enterprises or generate 75.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.86% |
| Values | Daily Returns |
AMERICAN EXPRESS PANY vs. Apogee Enterprises
Performance |
| Timeline |
| AMERICAN EXPRESS PANY |
| Apogee Enterprises |
AMERICAN and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMERICAN and Apogee Enterprises
The main advantage of trading using opposite AMERICAN and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMERICAN 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.| AMERICAN vs. RBC Bearings Incorporated | AMERICAN vs. Kontoor Brands | AMERICAN vs. Jeld Wen Holding | AMERICAN vs. Tyson Foods |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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