Correlation Between MYR and Zumiez
Can any of the company-specific risk be diversified away by investing in both MYR and Zumiez 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 Zumiez into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYR Group and Zumiez Inc, you can compare the effects of market volatilities on MYR and Zumiez 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 Zumiez. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYR and Zumiez.
Diversification Opportunities for MYR and Zumiez
Good diversification
The 3 months correlation between MYR and Zumiez is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group and Zumiez Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zumiez Inc 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 Zumiez. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zumiez Inc has no effect on the direction of MYR i.e., MYR and Zumiez go up and down completely randomly.
Pair Corralation between MYR and Zumiez
Given the investment horizon of 90 days MYR Group is expected to generate 0.58 times more return on investment than Zumiez. However, MYR Group is 1.73 times less risky than Zumiez. It trades about 0.22 of its potential returns per unit of risk. Zumiez Inc is currently generating about -0.01 per unit of risk. If you would invest 15,078 in MYR Group on September 12, 2024 and sell it today you would earn a total of 1,751 from holding MYR Group or generate 11.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYR Group vs. Zumiez Inc
Performance |
| Timeline |
| MYR Group |
| Zumiez Inc |
MYR and Zumiez Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYR and Zumiez
The main advantage of trading using opposite MYR and Zumiez positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYR position performs unexpectedly, Zumiez 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 Zumiez will offset losses from the drop in Zumiez'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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