Correlation Between MYR and Acciona SA
Can any of the company-specific risk be diversified away by investing in both MYR and Acciona SA 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 MYR and Acciona SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYR Group and Acciona SA, you can compare the effects of market volatilities on MYR and Acciona SA 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 MYR with a short position of Acciona SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYR and Acciona SA.
Diversification Opportunities for MYR and Acciona SA
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MYR and Acciona is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group and Acciona SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acciona SA and MYR 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 MYR Group are associated (or correlated) with Acciona SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acciona SA has no effect on the direction of MYR i.e., MYR and Acciona SA go up and down completely randomly.
Pair Corralation between MYR and Acciona SA
Given the investment horizon of 90 days MYR Group is expected to generate 1.31 times more return on investment than Acciona SA. However, MYR is 1.31 times more volatile than Acciona SA. It trades about 0.38 of its potential returns per unit of risk. Acciona SA is currently generating about -0.07 per unit of risk. If you would invest 11,676 in MYR Group on August 29, 2024 and sell it today you would earn a total of 4,201 from holding MYR Group or generate 35.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYR Group vs. Acciona SA
Performance |
| Timeline |
| MYR Group |
| Acciona SA |
MYR and Acciona SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYR and Acciona SA
The main advantage of trading using opposite MYR and Acciona SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYR position performs unexpectedly, Acciona SA 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 Acciona SA will offset losses from the drop in Acciona SA's long position.| MYR vs. Comfort Systems USA | MYR vs. Granite Construction Incorporated | MYR vs. Dycom Industries | MYR vs. MasTec Inc |
| Acciona SA vs. Aecom Technology | Acciona SA vs. Matrix Service Co | Acciona SA vs. MYR Group | Acciona SA vs. Fluor |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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