Correlation Between BankGuam Holding and MYR
Can any of the company-specific risk be diversified away by investing in both BankGuam Holding and MYR 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 BankGuam Holding and MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankGuam Holding and MYR Group, you can compare the effects of market volatilities on BankGuam Holding and MYR 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 BankGuam Holding with a short position of MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankGuam Holding and MYR.
Diversification Opportunities for BankGuam Holding and MYR
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BankGuam and MYR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding BankGuam Holding and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and BankGuam Holding 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 BankGuam Holding are associated (or correlated) with MYR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYR Group has no effect on the direction of BankGuam Holding i.e., BankGuam Holding and MYR go up and down completely randomly.
Pair Corralation between BankGuam Holding and MYR
If you would invest 15,034 in MYR Group on September 15, 2024 and sell it today you would earn a total of 1,525 from holding MYR Group or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
BankGuam Holding vs. MYR Group
Performance |
| Timeline |
| BankGuam Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MYR Group |
BankGuam Holding and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankGuam Holding and MYR
The main advantage of trading using opposite BankGuam Holding and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankGuam Holding position performs unexpectedly, MYR 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 MYR will offset losses from the drop in MYR's long position.| BankGuam Holding vs. MYR Group | BankGuam Holding vs. Asure Software | BankGuam Holding vs. Datadog | BankGuam Holding vs. Tyson Foods |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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