Correlation Between JGC Corp and Api Group

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

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

Diversification Opportunities for JGC Corp and Api Group

-0.01

Correlation Coefficient

JGC Corp  Api Group

Good diversification

The 3 months correlation between JGC and Api is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding JGC Corp 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 JGC Corp 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 JGC Corp 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 JGC Corp i.e., JGC Corp and Api Group go up and down completely randomly.

Pair Corralation between JGC Corp and Api Group

Assuming the 90 days horizon JGC Corp is expected to generate 2.74 times more return on investment than Api Group. However, JGC Corp is 2.74 times more volatile than Api Group Corp. It trades about 0.02 of its potential returns per unit of risk. Api Group Corp is currently generating about 0.04 per unit of risk. If you would invest  1,537  in JGC Corp on December 26, 2024 and sell it today you would lose (41.00) from holding JGC Corp or give up 2.67% of portfolio value over 90 days.

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

JGC Corp  vs.  Api Group Corp

JGC Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JGC Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, JGC Corp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Api Group Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Api Group Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Api Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with JGC Corp and Api Group

The main advantage of trading using opposite JGC Corp and Api Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGC Corp 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 JGC Corp 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.