Correlation Between Corsair Gaming and MYR

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

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

Diversification Opportunities for Corsair Gaming and MYR

0.55

Correlation Coefficient

Corsair Gaming  MYR

Very weak diversification

The 3 months correlation between Corsair and MYR is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and Corsair Gaming 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 Corsair Gaming 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 Corsair Gaming i.e., Corsair Gaming and MYR go up and down completely randomly.

Pair Corralation between Corsair Gaming and MYR

Given the investment horizon of 90 days Corsair Gaming is expected to generate 1.5 times less return on investment than MYR. In addition to that, Corsair Gaming is 1.11 times more volatile than MYR Group. It trades about 0.07 of its total potential returns per unit of risk. MYR Group is currently generating about 0.11 per unit of volatility. If you would invest  11,902  in MYR Group on October 14, 2024 and sell it today you would earn a total of  2,394  from holding MYR Group or generate 20.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Corsair Gaming  vs.  MYR Group

Corsair Gaming

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Corsair Gaming are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Corsair Gaming reported solid returns over the last few months and may actually be approaching a breakup point.

MYR Group

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MYR Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, MYR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Corsair Gaming and MYR

The main advantage of trading using opposite Corsair Gaming and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming 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 Corsair Gaming 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.