Correlation Between Eiffage SA and MYR
Can any of the company-specific risk be diversified away by investing in both Eiffage SA 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 Eiffage SA and MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eiffage SA ADR and MYR Group, you can compare the effects of market volatilities on Eiffage SA 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 Eiffage SA with a short position of MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eiffage SA and MYR.
Diversification Opportunities for Eiffage SA and MYR
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eiffage and MYR is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Eiffage SA ADR and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and Eiffage SA 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 Eiffage SA ADR 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 Eiffage SA i.e., Eiffage SA and MYR go up and down completely randomly.
Pair Corralation between Eiffage SA and MYR
Assuming the 90 days horizon Eiffage SA ADR is expected to under-perform the MYR. But the pink sheet apears to be less risky and, when comparing its historical volatility, Eiffage SA ADR is 1.06 times less risky than MYR. The pink sheet trades about -0.12 of its potential returns per unit of risk. The MYR Group is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 13,324 in MYR Group on September 4, 2024 and sell it today you would earn a total of 2,483 from holding MYR Group or generate 18.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eiffage SA ADR vs. MYR Group
Performance |
| Timeline |
| Eiffage SA ADR |
| MYR Group |
Eiffage SA and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eiffage SA and MYR
The main advantage of trading using opposite Eiffage SA and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eiffage SA 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.| Eiffage SA vs. Concrete Pumping Holdings | Eiffage SA vs. ACS Actividades de | Eiffage SA vs. ACS Actividades De | Eiffage SA vs. Badger Infrastructure Solutions |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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