Correlation Between ACS Actividades and Api Group

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

By analyzing existing cross correlation between ACS Actividades de and Api Group Corp, you can compare the effects of market volatilities on ACS Actividades and Api Group 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 ACS Actividades with a short position of Api Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACS Actividades and Api Group.

Diversification Opportunities for ACS Actividades and Api Group

0.21

Correlation Coefficient

ACS Actividades  Api Group

Modest diversification

The 3 months correlation between ACS and Api is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ACS Actividades de and Api Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Api Group Corp and ACS Actividades 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 ACS Actividades de are associated (or correlated) with Api Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Api Group Corp has no effect on the direction of ACS Actividades i.e., ACS Actividades and Api Group go up and down completely randomly.

Pair Corralation between ACS Actividades and Api Group

Assuming the 90 days horizon ACS Actividades is expected to generate 1.72 times less return on investment than Api Group. But when comparing it to its historical volatility, ACS Actividades de is 3.03 times less risky than Api Group. It trades about 0.18 of its potential returns per unit of risk. Api Group Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,392  in Api Group Corp on September 2, 2024 and sell it today you would earn a total of  386.00  from holding Api Group Corp or generate 11.38% return on investment over 90 days.

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

ACS Actividades de  vs.  Api Group Corp

ACS Actividades de

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ACS Actividades de are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, ACS Actividades may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Api Group Corp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Api Group Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Api Group may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with ACS Actividades and Api Group

The main advantage of trading using opposite ACS Actividades and Api Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACS Actividades position performs unexpectedly, Api Group 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 Api Group will offset losses from the drop in Api Group's long position.

The idea behind ACS Actividades de and Api Group Corp 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.