Correlation Between PARK24 and MYR
Can any of the company-specific risk be diversified away by investing in both PARK24 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 PARK24 and MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PARK24 Co and MYR Group, you can compare the effects of market volatilities on PARK24 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 PARK24 with a short position of MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARK24 and MYR.
Diversification Opportunities for PARK24 and MYR
Pay attention - limited upside
The 3 months correlation between PARK24 and MYR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PARK24 Co and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and PARK24 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 PARK24 Co 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 PARK24 i.e., PARK24 and MYR go up and down completely randomly.
Pair Corralation between PARK24 and MYR
Assuming the 90 days horizon PARK24 Co is expected to under-perform the MYR. But the pink sheet apears to be less risky and, when comparing its historical volatility, PARK24 Co is 2.17 times less risky than MYR. The pink sheet trades about -0.09 of its potential returns per unit of risk. The MYR Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 13,618 in MYR Group on September 4, 2024 and sell it today you would earn a total of 2,398 from holding MYR Group or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.28% |
| Values | Daily Returns |
PARK24 Co vs. MYR Group
Performance |
| Timeline |
| PARK24 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MYR Group |
PARK24 and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARK24 and MYR
The main advantage of trading using opposite PARK24 and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARK24 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.The idea behind PARK24 Co and MYR Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |