Correlation Between One Liberty and MYR
Can any of the company-specific risk be diversified away by investing in both One Liberty and MYR 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 One Liberty and MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Liberty Properties and MYR Group, you can compare the effects of market volatilities on One Liberty and MYR 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 One Liberty with a short position of MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Liberty and MYR.
Diversification Opportunities for One Liberty and MYR
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between One and MYR is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding One Liberty Properties and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and One Liberty 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 One Liberty Properties are associated (or correlated) with MYR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYR Group has no effect on the direction of One Liberty i.e., One Liberty and MYR go up and down completely randomly.
Pair Corralation between One Liberty and MYR
Considering the 90-day investment horizon One Liberty is expected to generate 1.51 times less return on investment than MYR. But when comparing it to its historical volatility, One Liberty Properties is 1.71 times less risky than MYR. It trades about 0.06 of its potential returns per unit of risk. MYR Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,173 in MYR Group on August 27, 2024 and sell it today you would earn a total of 5,932 from holding MYR Group or generate 64.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Liberty Properties vs. MYR Group
Performance |
| Timeline |
| One Liberty Properties |
| MYR Group |
One Liberty and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Liberty and MYR
The main advantage of trading using opposite One Liberty and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Liberty position performs unexpectedly, MYR 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 MYR will offset losses from the drop in MYR's long position.| One Liberty vs. Generationome Properties | One Liberty vs. Modiv Inc | One Liberty vs. Armada Hflr Pr | One Liberty vs. NexPoint Diversified Real |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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