Correlation Between Myers Industries and O I
Can any of the company-specific risk be diversified away by investing in both Myers Industries and O I 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 O I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myers Industries and O I Glass, you can compare the effects of market volatilities on Myers Industries and O I 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 O I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myers Industries and O I.
Diversification Opportunities for Myers Industries and O I
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Myers and O I is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Myers Industries and O I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O I Glass 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 O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O I Glass has no effect on the direction of Myers Industries i.e., Myers Industries and O I go up and down completely randomly.
Pair Corralation between Myers Industries and O I
Considering the 90-day investment horizon Myers Industries is expected to under-perform the O I. But the stock apears to be less risky and, when comparing its historical volatility, Myers Industries is 1.1 times less risky than O I. The stock trades about -0.14 of its potential returns per unit of risk. The O I Glass is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,274 in O I Glass on August 27, 2024 and sell it today you would earn a total of 23.00 from holding O I Glass or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myers Industries vs. O I Glass
Performance |
| Timeline |
| Myers Industries |
| O I Glass |
Myers Industries and O I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myers Industries and O I
The main advantage of trading using opposite Myers Industries and O I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myers Industries position performs unexpectedly, O I 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 O I will offset losses from the drop in O I's long position.| Myers Industries vs. O I Glass | Myers Industries vs. Pactiv Evergreen | Myers Industries vs. Greif Bros | Myers Industries vs. Crown Holdings |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |