Correlation Between MYR and Badger Infrastructure
Can any of the company-specific risk be diversified away by investing in both MYR and Badger Infrastructure 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 Badger Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYR Group and Badger Infrastructure Solutions, you can compare the effects of market volatilities on MYR and Badger Infrastructure 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 Badger Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYR and Badger Infrastructure.
Diversification Opportunities for MYR and Badger Infrastructure
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between MYR and Badger is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group and Badger Infrastructure Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Badger Infrastructure 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 Badger Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Badger Infrastructure has no effect on the direction of MYR i.e., MYR and Badger Infrastructure go up and down completely randomly.
Pair Corralation between MYR and Badger Infrastructure
Given the investment horizon of 90 days MYR is expected to generate 2.34 times less return on investment than Badger Infrastructure. In addition to that, MYR is 1.08 times more volatile than Badger Infrastructure Solutions. It trades about 0.03 of its total potential returns per unit of risk. Badger Infrastructure Solutions is currently generating about 0.07 per unit of volatility. If you would invest 1,966 in Badger Infrastructure Solutions on August 31, 2024 and sell it today you would earn a total of 787.00 from holding Badger Infrastructure Solutions or generate 40.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 64.71% |
| Values | Daily Returns |
MYR Group vs. Badger Infrastructure Solution
Performance |
| Timeline |
| MYR Group |
| Badger Infrastructure |
MYR and Badger Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYR and Badger Infrastructure
The main advantage of trading using opposite MYR and Badger Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYR position performs unexpectedly, Badger Infrastructure 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 Badger Infrastructure will offset losses from the drop in Badger Infrastructure's long position.The idea behind MYR Group and Badger Infrastructure Solutions 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.| Badger Infrastructure vs. ACS Actividades De | Badger Infrastructure vs. Arcadis NV | Badger Infrastructure vs. Acciona SA | Badger Infrastructure vs. JGC 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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