Correlation Between JGC Corp and MYR
Can any of the company-specific risk be diversified away by investing in both JGC Corp 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 JGC Corp and MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JGC Corp and MYR Group, you can compare the effects of market volatilities on JGC Corp 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 JGC Corp with a short position of MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGC Corp and MYR.
Diversification Opportunities for JGC Corp and MYR
Excellent diversification
The 3 months correlation between JGC and MYR is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding JGC Corp and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and JGC Corp 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 JGC Corp 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 JGC Corp i.e., JGC Corp and MYR go up and down completely randomly.
Pair Corralation between JGC Corp and MYR
Assuming the 90 days horizon JGC Corp is expected to under-perform the MYR. But the pink sheet apears to be less risky and, when comparing its historical volatility, JGC Corp is 1.17 times less risky than MYR. The pink sheet trades about -0.05 of its potential returns per unit of risk. The MYR Group is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 11,585 in MYR Group on August 25, 2024 and sell it today you would earn a total of 3,520 from holding MYR Group or generate 30.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
JGC Corp vs. MYR Group
Performance |
| Timeline |
| JGC Corp |
| MYR Group |
JGC Corp and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGC Corp and MYR
The main advantage of trading using opposite JGC Corp and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGC Corp 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.| JGC Corp vs. Bilfinger SE ADR | JGC Corp vs. ACS Actividades De | JGC Corp vs. Acciona SA | JGC Corp vs. ACS Actividades de |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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