Correlation Between Vodafone Group and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Vodafone Group 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 Vodafone Group and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vodafone Group PLC and Mynaric AG, you can compare the effects of market volatilities on Vodafone Group 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 Vodafone Group with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vodafone Group and Mynaric AG.
Diversification Opportunities for Vodafone Group and Mynaric AG
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vodafone and Mynaric is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Vodafone Group PLC and Mynaric AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mynaric AG and Vodafone Group 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 Vodafone Group PLC 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 Vodafone Group i.e., Vodafone Group and Mynaric AG go up and down completely randomly.
Pair Corralation between Vodafone Group and Mynaric AG
Assuming the 90 days trading horizon Vodafone Group PLC is expected to under-perform the Mynaric AG. But the stock apears to be less risky and, when comparing its historical volatility, Vodafone Group PLC is 1.15 times less risky than Mynaric AG. The stock trades about -0.07 of its potential returns per unit of risk. The Mynaric AG is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 498.00 in Mynaric AG on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Mynaric AG or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vodafone Group PLC vs. Mynaric AG
Performance |
| Timeline |
| Vodafone Group PLC |
| Mynaric AG |
Vodafone Group and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vodafone Group and Mynaric AG
The main advantage of trading using opposite Vodafone Group and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vodafone Group 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.| Vodafone Group vs. Ebro Foods | Vodafone Group vs. Porvair plc | Vodafone Group vs. Kinnevik Investment AB | Vodafone Group vs. Monks Investment Trust |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |