Correlation Between NEXE Innovations and Myers Industries
Can any of the company-specific risk be diversified away by investing in both NEXE Innovations and Myers Industries 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 NEXE Innovations and Myers Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXE Innovations and Myers Industries, you can compare the effects of market volatilities on NEXE Innovations and Myers Industries 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 NEXE Innovations with a short position of Myers Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXE Innovations and Myers Industries.
Diversification Opportunities for NEXE Innovations and Myers Industries
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NEXE and Myers is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding NEXE Innovations and Myers Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myers Industries and NEXE Innovations 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 NEXE Innovations are associated (or correlated) with Myers Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myers Industries has no effect on the direction of NEXE Innovations i.e., NEXE Innovations and Myers Industries go up and down completely randomly.
Pair Corralation between NEXE Innovations and Myers Industries
Assuming the 90 days horizon NEXE Innovations is expected to under-perform the Myers Industries. In addition to that, NEXE Innovations is 1.17 times more volatile than Myers Industries. It trades about -0.15 of its total potential returns per unit of risk. Myers Industries is currently generating about -0.01 per unit of volatility. If you would invest 1,178 in Myers Industries on September 1, 2024 and sell it today you would lose (18.00) from holding Myers Industries or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NEXE Innovations vs. Myers Industries
Performance |
| Timeline |
| NEXE Innovations |
| Myers Industries |
NEXE Innovations and Myers Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXE Innovations and Myers Industries
The main advantage of trading using opposite NEXE Innovations and Myers Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXE Innovations position performs unexpectedly, Myers Industries 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 Myers Industries will offset losses from the drop in Myers Industries' long position.| NEXE Innovations vs. Packaging Corp of | NEXE Innovations vs. International Paper | NEXE Innovations vs. Ball Corporation | NEXE Innovations vs. Amcor plc |
| Myers Industries vs. O I Glass | Myers Industries vs. Pactiv Evergreen | Myers Industries vs. Greif Bros | Myers Industries vs. Crown Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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