Correlation Between MYR and Integral
Can any of the company-specific risk be diversified away by investing in both MYR and Integral 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 Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYR Group and Integral Ad Science, you can compare the effects of market volatilities on MYR and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYR and Integral.
Diversification Opportunities for MYR and Integral
Poor diversification
The 3 months correlation between MYR and Integral is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of MYR i.e., MYR and Integral go up and down completely randomly.
Pair Corralation between MYR and Integral
Given the investment horizon of 90 days MYR Group is expected to generate 0.85 times more return on investment than Integral. However, MYR Group is 1.17 times less risky than Integral. It trades about 0.0 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.03 per unit of risk. If you would invest 13,945 in MYR Group on January 10, 2025 and sell it today you would lose (2,756) from holding MYR Group or give up 19.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYR Group vs. Integral Ad Science
Performance |
| Timeline |
| MYR Group |
| Integral Ad Science |
MYR and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYR and Integral
The main advantage of trading using opposite MYR and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYR position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| MYR vs. Comfort Systems USA | MYR vs. Granite Construction Incorporated | MYR vs. Dycom Industries | MYR vs. MasTec Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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