Correlation Between Beyond Meat and MYR
Can any of the company-specific risk be diversified away by investing in both Beyond Meat 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 Beyond Meat and MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and MYR Group, you can compare the effects of market volatilities on Beyond Meat 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 Beyond Meat with a short position of MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and MYR.
Diversification Opportunities for Beyond Meat and MYR
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beyond and MYR is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and Beyond Meat 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 Beyond Meat 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 Beyond Meat i.e., Beyond Meat and MYR go up and down completely randomly.
Pair Corralation between Beyond Meat and MYR
Given the investment horizon of 90 days Beyond Meat is expected to under-perform the MYR. In addition to that, Beyond Meat is 1.31 times more volatile than MYR Group. It trades about -0.16 of its total potential returns per unit of risk. MYR Group is currently generating about -0.21 per unit of volatility. If you would invest 13,739 in MYR Group on November 28, 2024 and sell it today you would lose (1,610) from holding MYR Group or give up 11.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Beyond Meat vs. MYR Group
Performance |
| Timeline |
| Beyond Meat |
| MYR Group |
Beyond Meat and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and MYR
The main advantage of trading using opposite Beyond Meat and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat 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.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| MYR vs. Comfort Systems USA | MYR vs. Granite Construction Incorporated | MYR vs. Dycom Industries | MYR vs. MasTec Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |