Correlation Between MYR and Aecom Technology
Can any of the company-specific risk be diversified away by investing in both MYR and Aecom Technology 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 Aecom Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYR Group and Aecom Technology, you can compare the effects of market volatilities on MYR and Aecom Technology 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 Aecom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYR and Aecom Technology.
Diversification Opportunities for MYR and Aecom Technology
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MYR and Aecom is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group and Aecom Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aecom Technology 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 Aecom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aecom Technology has no effect on the direction of MYR i.e., MYR and Aecom Technology go up and down completely randomly.
Pair Corralation between MYR and Aecom Technology
Given the investment horizon of 90 days MYR is expected to generate 10.07 times less return on investment than Aecom Technology. In addition to that, MYR is 2.31 times more volatile than Aecom Technology. It trades about 0.0 of its total potential returns per unit of risk. Aecom Technology is currently generating about 0.04 per unit of volatility. If you would invest 8,764 in Aecom Technology on February 17, 2024 and sell it today you would earn a total of 197.00 from holding Aecom Technology or generate 2.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MYR Group vs. Aecom Technology
Performance |
Timeline |
MYR Group |
Aecom Technology |
MYR and Aecom Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MYR and Aecom Technology
The main advantage of trading using opposite MYR and Aecom Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYR position performs unexpectedly, Aecom Technology 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 Aecom Technology will offset losses from the drop in Aecom Technology's long position.MYR vs. Comfort Systems USA | MYR vs. Granite Construction Incorporated | MYR vs. Dycom Industries | MYR vs. MasTec Inc |
Aecom Technology vs. EMCOR Group | Aecom Technology vs. Comfort Systems USA | Aecom Technology vs. Primoris Services | Aecom Technology vs. Granite Construction Incorporated |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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