Correlation Between MYR and Atlas Engineered
Can any of the company-specific risk be diversified away by investing in both MYR and Atlas Engineered 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 Atlas Engineered into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYR Group and Atlas Engineered Products, you can compare the effects of market volatilities on MYR and Atlas Engineered 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 Atlas Engineered. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYR and Atlas Engineered.
Diversification Opportunities for MYR and Atlas Engineered
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MYR and Atlas is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group and Atlas Engineered Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Engineered Products 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 Atlas Engineered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Engineered Products has no effect on the direction of MYR i.e., MYR and Atlas Engineered go up and down completely randomly.
Pair Corralation between MYR and Atlas Engineered
Given the investment horizon of 90 days MYR Group is expected to generate 0.84 times more return on investment than Atlas Engineered. However, MYR Group is 1.19 times less risky than Atlas Engineered. It trades about 0.03 of its potential returns per unit of risk. Atlas Engineered Products is currently generating about 0.01 per unit of risk. If you would invest 13,769 in MYR Group on August 31, 2024 and sell it today you would earn a total of 2,021 from holding MYR Group or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
MYR Group vs. Atlas Engineered Products
Performance |
| Timeline |
| MYR Group |
| Atlas Engineered Products |
MYR and Atlas Engineered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYR and Atlas Engineered
The main advantage of trading using opposite MYR and Atlas Engineered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYR position performs unexpectedly, Atlas Engineered 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 Atlas Engineered will offset losses from the drop in Atlas Engineered's long position.The idea behind MYR Group and Atlas Engineered Products pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Atlas Engineered vs. Travis Perkins PLC | Atlas Engineered vs. Antelope Enterprise Holdings | Atlas Engineered vs. Intelligent Living Application | Atlas Engineered vs. Beacon Roofing Supply |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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