Correlation Between BayCom Corp and Api Group
Can any of the company-specific risk be diversified away by investing in both BayCom Corp 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 BayCom Corp and Api Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BayCom Corp and Api Group Corp, you can compare the effects of market volatilities on BayCom Corp 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 BayCom Corp with a short position of Api Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BayCom Corp and Api Group.
Diversification Opportunities for BayCom Corp and Api Group
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BayCom and Api is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding BayCom Corp 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 BayCom Corp 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 BayCom Corp 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 BayCom Corp i.e., BayCom Corp and Api Group go up and down completely randomly.
Pair Corralation between BayCom Corp and Api Group
Given the investment horizon of 90 days BayCom Corp is expected to generate 3.21 times less return on investment than Api Group. In addition to that, BayCom Corp is 1.0 times more volatile than Api Group Corp. It trades about 0.11 of its total potential returns per unit of risk. Api Group Corp is currently generating about 0.36 per unit of volatility. If you would invest 2,485 in Api Group Corp on April 24, 2025 and sell it today you would earn a total of 953.00 from holding Api Group Corp or generate 38.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
BayCom Corp vs. Api Group Corp
Performance |
Timeline |
BayCom Corp |
Api Group Corp |
BayCom Corp and Api Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BayCom Corp and Api Group
The main advantage of trading using opposite BayCom Corp and Api Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BayCom Corp 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.BayCom Corp vs. Affinity Bancshares | BayCom Corp vs. Northeast Community Bancorp | BayCom Corp vs. Bayfirst Financial Corp | BayCom Corp vs. Southern California Bancorp |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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