Correlation Between Myers Industries and Imaflex
Can any of the company-specific risk be diversified away by investing in both Myers Industries and Imaflex 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 Myers Industries and Imaflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myers Industries and Imaflex, you can compare the effects of market volatilities on Myers Industries and Imaflex 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 Myers Industries with a short position of Imaflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myers Industries and Imaflex.
Diversification Opportunities for Myers Industries and Imaflex
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Myers and Imaflex is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Myers Industries and Imaflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imaflex and Myers Industries 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 Myers Industries are associated (or correlated) with Imaflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imaflex has no effect on the direction of Myers Industries i.e., Myers Industries and Imaflex go up and down completely randomly.
Pair Corralation between Myers Industries and Imaflex
Considering the 90-day investment horizon Myers Industries is expected to under-perform the Imaflex. But the stock apears to be less risky and, when comparing its historical volatility, Myers Industries is 1.31 times less risky than Imaflex. The stock trades about -0.05 of its potential returns per unit of risk. The Imaflex is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 105.00 in Imaflex on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Imaflex or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myers Industries vs. Imaflex
Performance |
| Timeline |
| Myers Industries |
| Imaflex |
Myers Industries and Imaflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myers Industries and Imaflex
The main advantage of trading using opposite Myers Industries and Imaflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myers Industries position performs unexpectedly, Imaflex 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 Imaflex will offset losses from the drop in Imaflex's long position.| Myers Industries vs. O I Glass | Myers Industries vs. Pactiv Evergreen | Myers Industries vs. Greif Bros | Myers Industries vs. Crown Holdings |
| Imaflex vs. Ascendant Resources | Imaflex vs. Cantex Mine Development | Imaflex vs. Amarc Resources | Imaflex vs. Sterling Metals Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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