Correlation Between Las Vegas and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Las Vegas 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 Las Vegas and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Las Vegas Sands and Mynaric AG, you can compare the effects of market volatilities on Las Vegas 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 Las Vegas with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Vegas and Mynaric AG.
Diversification Opportunities for Las Vegas and Mynaric AG
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Las and Mynaric is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Las Vegas Sands and Mynaric AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mynaric AG and Las Vegas 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 Las Vegas Sands 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 Las Vegas i.e., Las Vegas and Mynaric AG go up and down completely randomly.
Pair Corralation between Las Vegas and Mynaric AG
Assuming the 90 days trading horizon Las Vegas Sands is expected to generate 0.26 times more return on investment than Mynaric AG. However, Las Vegas Sands is 3.9 times less risky than Mynaric AG. It trades about 0.09 of its potential returns per unit of risk. Mynaric AG is currently generating about -0.08 per unit of risk. If you would invest 4,326 in Las Vegas Sands on September 2, 2024 and sell it today you would earn a total of 969.00 from holding Las Vegas Sands or generate 22.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Las Vegas Sands vs. Mynaric AG
Performance |
| Timeline |
| Las Vegas Sands |
| Mynaric AG |
Las Vegas and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Las Vegas and Mynaric AG
The main advantage of trading using opposite Las Vegas and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Las Vegas 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.| Las Vegas vs. Ebro Foods | Las Vegas vs. Edita Food Industries | Las Vegas vs. Roebuck Food Group | Las Vegas vs. Associated British Foods |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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