Correlation Between XPO Logistics and Api Group

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

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

Diversification Opportunities for XPO Logistics and Api Group

0.64

Correlation Coefficient

XPO Logistics  Api Group

Poor diversification

The 3 months correlation between XPO and Api is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding XPO Logistics 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 XPO Logistics 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 XPO Logistics 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 XPO Logistics i.e., XPO Logistics and Api Group go up and down completely randomly.

Pair Corralation between XPO Logistics and Api Group

Considering the 90-day investment horizon XPO Logistics is expected to generate 1.71 times more return on investment than Api Group. However, XPO Logistics is 1.71 times more volatile than Api Group Corp. It trades about 0.12 of its potential returns per unit of risk. Api Group Corp is currently generating about 0.18 per unit of risk. If you would invest  12,843  in XPO Logistics on September 11, 2025 and sell it today you would earn a total of  1,816  from holding XPO Logistics or generate 14.14% return on investment over 90 days.

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

XPO Logistics  vs.  Api Group Corp

XPO Logistics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in XPO Logistics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, XPO Logistics may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Api Group Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Api Group Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Api Group may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with XPO Logistics and Api Group

The main advantage of trading using opposite XPO Logistics and Api Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XPO Logistics 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.

The idea behind XPO Logistics and Api Group Corp 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.