Correlation Between Api Group and EMCOR

Can any of the company-specific risk be diversified away by investing in both Api Group and EMCOR 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 EMCOR 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 EMCOR Group, you can compare the effects of market volatilities on Api Group and EMCOR 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 EMCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Api Group and EMCOR.

Diversification Opportunities for Api Group and EMCOR

-0.17

Correlation Coefficient

Api Group  EMCOR

Good diversification

The 3 months correlation between Api and EMCOR is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Api Group Corp and EMCOR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMCOR Group 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 EMCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMCOR Group has no effect on the direction of Api Group i.e., Api Group and EMCOR go up and down completely randomly.

Pair Corralation between Api Group and EMCOR

Considering the 90-day investment horizon Api Group Corp is expected to under-perform the EMCOR. But the stock apears to be less risky and, when comparing its historical volatility, Api Group Corp is 1.41 times less risky than EMCOR. The stock trades about -0.11 of its potential returns per unit of risk. The EMCOR Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  65,559  in EMCOR Group on July 22, 2025 and sell it today you would earn a total of  3,342  from holding EMCOR Group or generate 5.1% return on investment over 90 days.

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

Api Group Corp  vs.  EMCOR Group

Api Group Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Api Group Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Api Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

EMCOR Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in EMCOR Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, EMCOR exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Api Group and EMCOR

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

The idea behind Api Group Corp and EMCOR Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.