Correlation Between Argan and Api Group
Can any of the company-specific risk be diversified away by investing in both Argan 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 Argan and Api Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argan Inc and Api Group Corp, you can compare the effects of market volatilities on Argan 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 Argan with a short position of Api Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argan and Api Group.
Diversification Opportunities for Argan and Api Group
Weak diversification
The 3 months correlation between Argan and Api is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Argan Inc 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 Argan 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 Argan Inc 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 Argan i.e., Argan and Api Group go up and down completely randomly.
Pair Corralation between Argan and Api Group
Considering the 90-day investment horizon Argan is expected to generate 1.11 times less return on investment than Api Group. In addition to that, Argan is 2.66 times more volatile than Api Group Corp. It trades about 0.06 of its total potential returns per unit of risk. Api Group Corp is currently generating about 0.16 per unit of volatility. If you would invest 3,121 in Api Group Corp on June 1, 2025 and sell it today you would earn a total of 447.00 from holding Api Group Corp or generate 14.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argan Inc vs. Api Group Corp
Performance |
| Timeline |
| Argan Inc |
| Api Group Corp |
Argan and Api Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argan and Api Group
The main advantage of trading using opposite Argan and Api Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argan 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.| Argan vs. Api Group Corp | Argan vs. Great Lakes Dredge | Argan vs. Granite Construction Incorporated | Argan vs. Arcosa Inc |
| Api Group vs. Topbuild Corp | Api Group vs. MYR Group | Api Group vs. Comfort Systems USA | Api Group vs. Construction Partners |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges |