Correlation Between IES Holdings and Api Group
Can any of the company-specific risk be diversified away by investing in both IES Holdings 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 IES Holdings and Api Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IES Holdings and Api Group Corp, you can compare the effects of market volatilities on IES Holdings 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 IES Holdings with a short position of Api Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of IES Holdings and Api Group.
Diversification Opportunities for IES Holdings and Api Group
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IES and Api is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding IES Holdings 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 IES Holdings 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 IES Holdings 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 IES Holdings i.e., IES Holdings and Api Group go up and down completely randomly.
Pair Corralation between IES Holdings and Api Group
Given the investment horizon of 90 days IES Holdings is expected to generate 3.62 times less return on investment than Api Group. In addition to that, IES Holdings is 1.63 times more volatile than Api Group Corp. It trades about 0.02 of its total potential returns per unit of risk. Api Group Corp is currently generating about 0.1 per unit of volatility. If you would invest 3,442 in Api Group Corp on May 31, 2025 and sell it today you would earn a total of 122.50 from holding Api Group Corp or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
IES Holdings vs. Api Group Corp
Performance |
| Timeline |
| IES Holdings |
| Api Group Corp |
IES Holdings and Api Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IES Holdings and Api Group
The main advantage of trading using opposite IES Holdings and Api Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IES Holdings 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.| IES Holdings vs. MYR Group | IES Holdings vs. Limbach Holdings | IES Holdings vs. Bowman Consulting Group | IES Holdings vs. Matrix Service Co |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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