Correlation Between Myers Industries and O I

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

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

Diversification Opportunities for Myers Industries and O I

0.55

Correlation Coefficient

Myers Industries  O I

Very weak diversification

The 3 months correlation between Myers and O I is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Myers Industries and O I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O I Glass and Myers Industries 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 Myers Industries are associated (or correlated) with O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O I Glass has no effect on the direction of Myers Industries i.e., Myers Industries and O I go up and down completely randomly.

Pair Corralation between Myers Industries and O I

Considering the 90-day investment horizon Myers Industries is expected to generate 1.46 times less return on investment than O I. In addition to that, Myers Industries is 1.65 times more volatile than O I Glass. It trades about 0.04 of its total potential returns per unit of risk. O I Glass is currently generating about 0.1 per unit of volatility. If you would invest  1,033  in O I Glass on December 26, 2024 and sell it today you would earn a total of  152.00  from holding O I Glass or generate 14.71% return on investment over 90 days.

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

Myers Industries  vs.  O I Glass

Myers Industries

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Myers Industries are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Myers Industries may actually be approaching a critical reversion point that can send shares even higher in April 2025.

O I Glass

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in O I Glass are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile forward indicators, O I demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Myers Industries and O I

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

The idea behind Myers Industries and O I Glass 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.