Correlation Between Radcom and Apogee Enterprises

Can any of the company-specific risk be diversified away by investing in both Radcom 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 Radcom and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Radcom and Apogee Enterprises, you can compare the effects of market volatilities on Radcom 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 Radcom with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radcom and Apogee Enterprises.

Diversification Opportunities for Radcom and Apogee Enterprises

0.16

Correlation Coefficient

Radcom  Apogee Enterprises

Average diversification

The 3 months correlation between Radcom and Apogee is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Radcom and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Radcom 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 Radcom 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 Radcom i.e., Radcom and Apogee Enterprises go up and down completely randomly.

Pair Corralation between Radcom and Apogee Enterprises

Given the investment horizon of 90 days Radcom is expected to generate 1.43 times more return on investment than Apogee Enterprises. However, Radcom is 1.43 times more volatile than Apogee Enterprises. It trades about 0.14 of its potential returns per unit of risk. Apogee Enterprises is currently generating about 0.07 per unit of risk. If you would invest  1,143  in Radcom on April 29, 2025 and sell it today you would earn a total of  307.00  from holding Radcom or generate 26.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Radcom  vs.  Apogee Enterprises

Radcom

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Radcom are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Radcom displayed solid returns over the last few months and may actually be approaching a breakup point.

Apogee Enterprises

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Apogee Enterprises are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Apogee Enterprises may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Radcom and Apogee Enterprises

The main advantage of trading using opposite Radcom and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radcom 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.

The idea behind Radcom and Apogee Enterprises pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..