Correlation Between Aenza SAA and MYR

Can any of the company-specific risk be diversified away by investing in both Aenza SAA 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 Aenza SAA and MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aenza SAA and MYR Group, you can compare the effects of market volatilities on Aenza SAA 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 Aenza SAA with a short position of MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aenza SAA and MYR.

Diversification Opportunities for Aenza SAA and MYR

0.0

Correlation Coefficient

Aenza SAA  MYR

Pay attention - limited upside

The 3 months correlation between Aenza and MYR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aenza SAA and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and Aenza SAA 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 Aenza SAA 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 Aenza SAA i.e., Aenza SAA and MYR go up and down completely randomly.

Pair Corralation between Aenza SAA and MYR

If you would invest (100.00) in Aenza SAA on November 29, 2024 and sell it today you would earn a total of  100.00  from holding Aenza SAA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aenza SAA  vs.  MYR Group

Aenza SAA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aenza SAA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Aenza SAA is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

MYR Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days MYR Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Aenza SAA and MYR

The main advantage of trading using opposite Aenza SAA and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aenza SAA 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 Aenza SAA 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.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.