Correlation Between Boeing and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Boeing 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 Boeing and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Mynaric AG ADR, you can compare the effects of market volatilities on Boeing 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 Boeing with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Mynaric AG.
Diversification Opportunities for Boeing and Mynaric AG
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boeing and Mynaric is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Mynaric AG ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mynaric AG ADR and Boeing 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 The Boeing 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 ADR has no effect on the direction of Boeing i.e., Boeing and Mynaric AG go up and down completely randomly.
Pair Corralation between Boeing and Mynaric AG
Allowing for the 90-day total investment horizon The Boeing is expected to under-perform the Mynaric AG. But the stock apears to be less risky and, when comparing its historical volatility, The Boeing is 2.9 times less risky than Mynaric AG. The stock trades about -0.08 of its potential returns per unit of risk. The Mynaric AG ADR is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 98.00 in Mynaric AG ADR on August 30, 2024 and sell it today you would earn a total of 41.00 from holding Mynaric AG ADR or generate 41.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boeing vs. Mynaric AG ADR
Performance |
| Timeline |
| Boeing |
| Mynaric AG ADR |
Boeing and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Mynaric AG
The main advantage of trading using opposite Boeing and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing 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.| Boeing vs. Raytheon Technologies Corp | Boeing vs. Northrop Grumman | Boeing vs. General Dynamics | Boeing vs. L3Harris Technologies |
| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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