Correlation Between SOUTHERN and MYR
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By analyzing existing cross correlation between SOUTHERN CALIF EDISON and MYR Group, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and MYR.
Diversification Opportunities for SOUTHERN and MYR
Pay attention - limited upside
The 3 months correlation between SOUTHERN and MYR is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF EDISON and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and SOUTHERN 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 SOUTHERN CALIF EDISON 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 SOUTHERN i.e., SOUTHERN and MYR go up and down completely randomly.
Pair Corralation between SOUTHERN and MYR
Assuming the 90 days trading horizon SOUTHERN CALIF EDISON is expected to under-perform the MYR. But the bond apears to be less risky and, when comparing its historical volatility, SOUTHERN CALIF EDISON is 2.17 times less risky than MYR. The bond trades about -0.18 of its potential returns per unit of risk. The MYR Group is currently generating about 0.32 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
SOUTHERN CALIF EDISON vs. MYR Group
Performance |
| Timeline |
| SOUTHERN CALIF EDISON |
| MYR Group |
SOUTHERN and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and MYR
The main advantage of trading using opposite SOUTHERN and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. Park Ohio Holdings | SOUTHERN vs. Primoris Services | SOUTHERN vs. Griffon | SOUTHERN vs. AKITA Drilling |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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