Correlation Between MYR and BRISTOL
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By analyzing existing cross correlation between MYR Group and BRISTOL MYERS SQUIBB CO, you can compare the effects of market volatilities on MYR and BRISTOL 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 BRISTOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYR and BRISTOL.
Diversification Opportunities for MYR and BRISTOL
Good diversification
The 3 months correlation between MYR and BRISTOL is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group and BRISTOL MYERS SQUIBB CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRISTOL MYERS SQUIBB 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 BRISTOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRISTOL MYERS SQUIBB has no effect on the direction of MYR i.e., MYR and BRISTOL go up and down completely randomly.
Pair Corralation between MYR and BRISTOL
Given the investment horizon of 90 days MYR Group is expected to generate 1.4 times more return on investment than BRISTOL. However, MYR is 1.4 times more volatile than BRISTOL MYERS SQUIBB CO. It trades about 0.32 of its potential returns per unit of risk. BRISTOL MYERS SQUIBB CO is currently generating about 0.23 per unit of risk. If you would invest 13,324 in MYR Group on September 5, 2024 and sell it today you would earn a total of 2,692 from holding MYR Group or generate 20.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
MYR Group vs. BRISTOL MYERS SQUIBB CO
Performance |
| Timeline |
| MYR Group |
| BRISTOL MYERS SQUIBB |
MYR and BRISTOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYR and BRISTOL
The main advantage of trading using opposite MYR and BRISTOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYR position performs unexpectedly, BRISTOL 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 BRISTOL will offset losses from the drop in BRISTOL'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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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