Correlation Between Axon Enterprise and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Axon Enterprise and Mynaric AG 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 Axon Enterprise and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axon Enterprise and Mynaric AG, you can compare the effects of market volatilities on Axon Enterprise and Mynaric AG 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 Axon Enterprise with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axon Enterprise and Mynaric AG.
Diversification Opportunities for Axon Enterprise and Mynaric AG
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Axon and Mynaric is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Axon Enterprise and Mynaric AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mynaric AG and Axon Enterprise 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 Axon Enterprise are associated (or correlated) with Mynaric AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mynaric AG has no effect on the direction of Axon Enterprise i.e., Axon Enterprise and Mynaric AG go up and down completely randomly.
Pair Corralation between Axon Enterprise and Mynaric AG
Assuming the 90 days trading horizon Axon Enterprise is expected to generate 0.66 times more return on investment than Mynaric AG. However, Axon Enterprise is 1.53 times less risky than Mynaric AG. It trades about 0.25 of its potential returns per unit of risk. Mynaric AG is currently generating about 0.11 per unit of risk. If you would invest 36,341 in Axon Enterprise on September 2, 2024 and sell it today you would earn a total of 28,411 from holding Axon Enterprise or generate 78.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
Axon Enterprise vs. Mynaric AG
Performance |
| Timeline |
| Axon Enterprise |
| Mynaric AG |
Axon Enterprise and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axon Enterprise and Mynaric AG
The main advantage of trading using opposite Axon Enterprise and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axon Enterprise position performs unexpectedly, Mynaric AG 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 Mynaric AG will offset losses from the drop in Mynaric AG's long position.| Axon Enterprise vs. Catalyst Media Group | Axon Enterprise vs. JD Sports Fashion | Axon Enterprise vs. Hollywood Bowl Group | Axon Enterprise vs. DXC Technology Co |
| Mynaric AG vs. Gamma Communications PLC | Mynaric AG vs. Smithson Investment Trust | Mynaric AG vs. Team Internet Group | Mynaric AG vs. Schroders Investment Trusts |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |