Correlation Between Belden and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Belden 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 Belden and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belden Inc and Mynaric AG ADR, you can compare the effects of market volatilities on Belden 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 Belden with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belden and Mynaric AG.
Diversification Opportunities for Belden and Mynaric AG
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Belden and Mynaric is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Belden Inc 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 Belden 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 Belden Inc 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 Belden i.e., Belden and Mynaric AG go up and down completely randomly.
Pair Corralation between Belden and Mynaric AG
Considering the 90-day investment horizon Belden is expected to generate 15.1 times less return on investment than Mynaric AG. But when comparing it to its historical volatility, Belden Inc is 14.97 times less risky than Mynaric AG. It trades about 0.11 of its potential returns per unit of risk. Mynaric AG ADR is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Mynaric AG ADR on October 20, 2024 and sell it today you would earn a total of 5.00 from holding Mynaric AG ADR or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Belden Inc vs. Mynaric AG ADR
Performance |
| Timeline |
| Belden Inc |
| Mynaric AG ADR |
Belden and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belden and Mynaric AG
The main advantage of trading using opposite Belden and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belden 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.| Belden vs. Clearfield | Belden vs. Comtech Telecommunications Corp | Belden vs. Knowles Cor | Belden vs. Extreme Networks |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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