Correlation Between CT Real and MYR
Can any of the company-specific risk be diversified away by investing in both CT Real 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 CT Real and MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CT Real Estate and MYR Group, you can compare the effects of market volatilities on CT Real 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 CT Real with a short position of MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CT Real and MYR.
Diversification Opportunities for CT Real and MYR
Excellent diversification
The 3 months correlation between CTRRF and MYR is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding CT Real Estate and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and CT Real 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 CT Real Estate 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 CT Real i.e., CT Real and MYR go up and down completely randomly.
Pair Corralation between CT Real and MYR
Assuming the 90 days horizon CT Real Estate is expected to generate 0.68 times more return on investment than MYR. However, CT Real Estate is 1.48 times less risky than MYR. It trades about 0.03 of its potential returns per unit of risk. MYR Group is currently generating about 0.0 per unit of risk. If you would invest 988.00 in CT Real Estate on August 24, 2024 and sell it today you would earn a total of 49.00 from holding CT Real Estate or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CT Real Estate vs. MYR Group
Performance |
| Timeline |
| CT Real Estate |
| MYR Group |
CT Real and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CT Real and MYR
The main advantage of trading using opposite CT Real and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CT Real 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.| CT Real vs. Phillips Edison Co | CT Real vs. Simon Property Group | CT Real vs. Inventrust Properties Corp | CT Real vs. Site Centers Corp |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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