Correlation Between Clearfield and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Clearfield 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 Clearfield and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearfield and Mynaric AG ADR, you can compare the effects of market volatilities on Clearfield 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 Clearfield with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearfield and Mynaric AG.
Diversification Opportunities for Clearfield and Mynaric AG
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clearfield and Mynaric is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Clearfield 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 Clearfield 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 Clearfield 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 Clearfield i.e., Clearfield and Mynaric AG go up and down completely randomly.
Pair Corralation between Clearfield and Mynaric AG
Given the investment horizon of 90 days Clearfield is expected to generate 0.24 times more return on investment than Mynaric AG. However, Clearfield is 4.09 times less risky than Mynaric AG. It trades about 0.14 of its potential returns per unit of risk. Mynaric AG ADR is currently generating about -0.15 per unit of risk. If you would invest 3,201 in Clearfield on November 2, 2024 and sell it today you would earn a total of 273.00 from holding Clearfield or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearfield vs. Mynaric AG ADR
Performance |
| Timeline |
| Clearfield |
| Mynaric AG ADR |
Clearfield and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearfield and Mynaric AG
The main advantage of trading using opposite Clearfield and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearfield 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.| Clearfield vs. Comtech Telecommunications Corp | Clearfield vs. Knowles Cor | Clearfield vs. Extreme Networks | Clearfield vs. KVH Industries |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |