Correlation Between DSS and Myers Industries

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

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

Diversification Opportunities for DSS and Myers Industries

0.51

Correlation Coefficient

DSS  Myers Industries

Very weak diversification

The 3 months correlation between DSS and Myers is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding DSS Inc and Myers Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myers Industries and DSS 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 DSS Inc are associated (or correlated) with Myers Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myers Industries has no effect on the direction of DSS i.e., DSS and Myers Industries go up and down completely randomly.

Pair Corralation between DSS and Myers Industries

Considering the 90-day investment horizon DSS Inc is expected to under-perform the Myers Industries. In addition to that, DSS is 1.42 times more volatile than Myers Industries. It trades about -0.07 of its total potential returns per unit of risk. Myers Industries is currently generating about -0.06 per unit of volatility. If you would invest  1,799  in Myers Industries on October 5, 2024 and sell it today you would lose (695.00) from holding Myers Industries or give up 38.63% of portfolio value over 90 days.

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

DSS Inc  vs.  Myers Industries

DSS Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DSS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Myers Industries

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Myers Industries has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with DSS and Myers Industries

The main advantage of trading using opposite DSS and Myers Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSS position performs unexpectedly, Myers Industries 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 Myers Industries will offset losses from the drop in Myers Industries' long position.

The idea behind DSS Inc and Myers Industries 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.