Correlation Between Titan International and MYR

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

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

Diversification Opportunities for Titan International and MYR

-0.57

Correlation Coefficient

Titan International  MYR

Excellent diversification

The 3 months correlation between Titan and MYR is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Titan International and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group and Titan International 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 Titan International 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 Titan International i.e., Titan International and MYR go up and down completely randomly.

Pair Corralation between Titan International and MYR

Considering the 90-day investment horizon Titan International is expected to generate 1.04 times more return on investment than MYR. However, Titan International is 1.04 times more volatile than MYR Group. It trades about 0.13 of its potential returns per unit of risk. MYR Group is currently generating about -0.09 per unit of risk. If you would invest  692.00  in Titan International on December 27, 2024 and sell it today you would earn a total of  190.00  from holding Titan International or generate 27.46% return on investment over 90 days.

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

Titan International  vs.  MYR Group

Titan International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Titan International are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Titan International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Titan International and MYR

The main advantage of trading using opposite Titan International and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan International 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 Titan International 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.