Correlation Between Apogee Enterprises and JJill
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and JJill 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 Apogee Enterprises and JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and JJill Inc, you can compare the effects of market volatilities on Apogee Enterprises and JJill 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 Apogee Enterprises with a short position of JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and JJill.
Diversification Opportunities for Apogee Enterprises and JJill
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apogee and JJill is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and Apogee Enterprises 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 Apogee Enterprises are associated (or correlated) with JJill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJill Inc has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and JJill go up and down completely randomly.
Pair Corralation between Apogee Enterprises and JJill
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 1.44 times more return on investment than JJill. However, Apogee Enterprises is 1.44 times more volatile than JJill Inc. It trades about 0.04 of its potential returns per unit of risk. JJill Inc is currently generating about 0.05 per unit of risk. If you would invest 6,722 in Apogee Enterprises on September 21, 2024 and sell it today you would earn a total of 407.00 from holding Apogee Enterprises or generate 6.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Apogee Enterprises vs. JJill Inc
Performance |
Timeline |
Apogee Enterprises |
JJill Inc |
Apogee Enterprises and JJill Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apogee Enterprises and JJill
The main advantage of trading using opposite Apogee Enterprises and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, JJill 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 JJill will offset losses from the drop in JJill's long position.Apogee Enterprises vs. Quanex Building Products | ||
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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