Correlation Between Api Group and Comfort Systems
Can any of the company-specific risk be diversified away by investing in both Api Group and Comfort Systems 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 Api Group and Comfort Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Api Group Corp and Comfort Systems USA, you can compare the effects of market volatilities on Api Group and Comfort Systems 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 Api Group with a short position of Comfort Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Api Group and Comfort Systems.
Diversification Opportunities for Api Group and Comfort Systems
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Api and Comfort is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Api Group Corp and Comfort Systems USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comfort Systems USA and Api Group 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 Api Group Corp are associated (or correlated) with Comfort Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comfort Systems USA has no effect on the direction of Api Group i.e., Api Group and Comfort Systems go up and down completely randomly.
Pair Corralation between Api Group and Comfort Systems
Considering the 90-day investment horizon Api Group Corp is expected to under-perform the Comfort Systems. But the stock apears to be less risky and, when comparing its historical volatility, Api Group Corp is 1.65 times less risky than Comfort Systems. The stock trades about -0.04 of its potential returns per unit of risk. The Comfort Systems USA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 32,725 in Comfort Systems USA on January 12, 2025 and sell it today you would earn a total of 2,152 from holding Comfort Systems USA or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Api Group Corp vs. Comfort Systems USA
Performance |
| Timeline |
| Api Group Corp |
| Comfort Systems USA |
Api Group and Comfort Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Api Group and Comfort Systems
The main advantage of trading using opposite Api Group and Comfort Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Api Group position performs unexpectedly, Comfort Systems 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 Comfort Systems will offset losses from the drop in Comfort Systems' long position.| Api Group vs. Innovate Corp | Api Group vs. Energy Services | Api Group vs. Arcosa Inc | Api Group vs. Argan Inc |
| Comfort Systems vs. MYR Group | Comfort Systems vs. Granite Construction Incorporated | Comfort Systems vs. Dycom Industries | Comfort Systems vs. MasTec Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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