Correlation Between Api GroupCorp and Blink Charging

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

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

Diversification Opportunities for Api GroupCorp and Blink Charging

0.33

Correlation Coefficient

Api GroupCorp  Blink Charging

Weak diversification

The 3 months correlation between Api and Blink is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Api GroupCorp and Blink Charging Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blink Charging and Api GroupCorp 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 GroupCorp are associated (or correlated) with Blink Charging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blink Charging has no effect on the direction of Api GroupCorp i.e., Api GroupCorp and Blink Charging go up and down completely randomly.

Pair Corralation between Api GroupCorp and Blink Charging

Considering the 90-day investment horizon Api GroupCorp is expected to generate 0.27 times more return on investment than Blink Charging. However, Api GroupCorp is 3.7 times less risky than Blink Charging. It trades about 0.1 of its potential returns per unit of risk. Blink Charging Co is currently generating about -0.05 per unit of risk. If you would invest  2,819  in Api GroupCorp on January 18, 2024 and sell it today you would earn a total of  887.00  from holding Api GroupCorp or generate 31.47% return on investment over 90 days.

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

Api GroupCorp  vs.  Blink Charging Co

Api GroupCorp

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Api GroupCorp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Api GroupCorp reported solid returns over the last few months and may actually be approaching a breakup point.

Blink Charging

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Blink Charging Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Blink Charging disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Api GroupCorp and Blink Charging

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

The idea behind Api GroupCorp and Blink Charging Co 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.