Correlation Between Mynaric AG and Toyota
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Toyota 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 Mynaric AG and Toyota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mynaric AG and Toyota Motor Corp, you can compare the effects of market volatilities on Mynaric AG and Toyota 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 Mynaric AG with a short position of Toyota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Toyota.
Diversification Opportunities for Mynaric AG and Toyota
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mynaric and Toyota is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG and Toyota Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toyota Motor Corp and Mynaric AG 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 Mynaric AG are associated (or correlated) with Toyota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toyota Motor Corp has no effect on the direction of Mynaric AG i.e., Mynaric AG and Toyota go up and down completely randomly.
Pair Corralation between Mynaric AG and Toyota
Assuming the 90 days trading horizon Mynaric AG is expected to under-perform the Toyota. In addition to that, Mynaric AG is 2.52 times more volatile than Toyota Motor Corp. It trades about -0.04 of its total potential returns per unit of risk. Toyota Motor Corp is currently generating about 0.05 per unit of volatility. If you would invest 181,750 in Toyota Motor Corp on September 14, 2024 and sell it today you would earn a total of 90,100 from holding Toyota Motor Corp or generate 49.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.99% |
| Values | Daily Returns |
Mynaric AG vs. Toyota Motor Corp
Performance |
| Timeline |
| Mynaric AG |
| Toyota Motor Corp |
Mynaric AG and Toyota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Toyota
The main advantage of trading using opposite Mynaric AG and Toyota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Toyota 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 Toyota will offset losses from the drop in Toyota's long position.| Mynaric AG vs. Toyota Motor Corp | Mynaric AG vs. SoftBank Group Corp | Mynaric AG vs. OTP Bank Nyrt | Mynaric AG vs. Hershey Co |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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