Correlation Between Cizzle Biotechnology and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Cizzle Biotechnology 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 Cizzle Biotechnology and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cizzle Biotechnology Holdings and Mynaric AG, you can compare the effects of market volatilities on Cizzle Biotechnology 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 Cizzle Biotechnology with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cizzle Biotechnology and Mynaric AG.
Diversification Opportunities for Cizzle Biotechnology and Mynaric AG
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cizzle and Mynaric is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cizzle Biotechnology Holdings and Mynaric AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mynaric AG and Cizzle Biotechnology 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 Cizzle Biotechnology Holdings 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 Cizzle Biotechnology i.e., Cizzle Biotechnology and Mynaric AG go up and down completely randomly.
Pair Corralation between Cizzle Biotechnology and Mynaric AG
Assuming the 90 days trading horizon Cizzle Biotechnology is expected to generate 2.23 times less return on investment than Mynaric AG. But when comparing it to its historical volatility, Cizzle Biotechnology Holdings is 1.47 times less risky than Mynaric AG. It trades about 0.08 of its potential returns per unit of risk. Mynaric AG is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 360.00 in Mynaric AG on September 2, 2024 and sell it today you would earn a total of 142.00 from holding Mynaric AG or generate 39.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
Cizzle Biotechnology Holdings vs. Mynaric AG
Performance |
| Timeline |
| Cizzle Biotechnology |
| Mynaric AG |
Cizzle Biotechnology and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cizzle Biotechnology and Mynaric AG
The main advantage of trading using opposite Cizzle Biotechnology and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cizzle Biotechnology 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.| Cizzle Biotechnology vs. Samsung Electronics Co | Cizzle Biotechnology vs. Samsung Electronics Co | Cizzle Biotechnology vs. Hyundai Motor | Cizzle Biotechnology vs. Toyota Motor Corp |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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