Correlation Between MYR and Hurco Companies
Can any of the company-specific risk be diversified away by investing in both MYR and Hurco Companies 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 Hurco Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYR Group and Hurco Companies, you can compare the effects of market volatilities on MYR and Hurco Companies 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 Hurco Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYR and Hurco Companies.
Diversification Opportunities for MYR and Hurco Companies
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between MYR and Hurco is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group and Hurco Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hurco Companies 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 Hurco Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hurco Companies has no effect on the direction of MYR i.e., MYR and Hurco Companies go up and down completely randomly.
Pair Corralation between MYR and Hurco Companies
Given the investment horizon of 90 days MYR is expected to generate 1.9 times less return on investment than Hurco Companies. But when comparing it to its historical volatility, MYR Group is 1.38 times less risky than Hurco Companies. It trades about 0.08 of its potential returns per unit of risk. Hurco Companies is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,891 in Hurco Companies on October 24, 2024 and sell it today you would earn a total of 111.00 from holding Hurco Companies or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYR Group vs. Hurco Companies
Performance |
| Timeline |
| MYR Group |
| Hurco Companies |
MYR and Hurco Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYR and Hurco Companies
The main advantage of trading using opposite MYR and Hurco Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYR position performs unexpectedly, Hurco Companies 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 Hurco Companies will offset losses from the drop in Hurco Companies' long position.| MYR vs. Comfort Systems USA | MYR vs. Granite Construction Incorporated | MYR vs. Dycom Industries | MYR vs. MasTec Inc |
| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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