Correlation Between MYR and Veea

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

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

Diversification Opportunities for MYR and Veea

-0.56

Correlation Coefficient

MYR  Veea

Excellent diversification

The 3 months correlation between MYR and Veea is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc 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 Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of MYR i.e., MYR and Veea go up and down completely randomly.

Pair Corralation between MYR and Veea

Given the investment horizon of 90 days MYR Group is expected to generate 0.2 times more return on investment than Veea. However, MYR Group is 4.98 times less risky than Veea. It trades about 0.05 of its potential returns per unit of risk. Veea Inc is currently generating about -0.01 per unit of risk. If you would invest  13,635  in MYR Group on October 8, 2024 and sell it today you would earn a total of  1,706  from holding MYR Group or generate 12.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	64.0%
Values	Daily Returns

MYR Group  vs.  Veea Inc

MYR Group

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MYR Group are ranked lower than 14 (%) 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.

Veea Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Veea Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Veea is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with MYR and Veea

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

The idea behind MYR Group and Veea Inc 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..