Correlation Between Limbach Holdings and MYR
Can any of the company-specific risk be diversified away by investing in both Limbach Holdings 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 Limbach Holdings and MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Limbach Holdings and MYR Group, you can compare the effects of market volatilities on Limbach Holdings 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 Limbach Holdings with a short position of MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Limbach Holdings and MYR.
Diversification Opportunities for Limbach Holdings and MYR
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Limbach and MYR is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Limbach Holdings and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and Limbach Holdings 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 Limbach Holdings 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 Limbach Holdings i.e., Limbach Holdings and MYR go up and down completely randomly.
Pair Corralation between Limbach Holdings and MYR
Considering the 90-day investment horizon Limbach Holdings is expected to generate 1.3 times more return on investment than MYR. However, Limbach Holdings is 1.3 times more volatile than MYR Group. It trades about 0.15 of its potential returns per unit of risk. MYR Group is currently generating about 0.17 per unit of risk. If you would invest 7,715 in Limbach Holdings on October 25, 2024 and sell it today you would earn a total of 2,818 from holding Limbach Holdings or generate 36.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Limbach Holdings vs. MYR Group
Performance |
| Timeline |
| Limbach Holdings |
| MYR Group |
Limbach Holdings and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Limbach Holdings and MYR
The main advantage of trading using opposite Limbach Holdings and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Limbach Holdings 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.| Limbach Holdings vs. MYR Group | Limbach Holdings vs. Granite Construction Incorporated | Limbach Holdings vs. Construction Partners | Limbach Holdings vs. Great Lakes Dredge |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |