Correlation Between Fulcrum Metals and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Fulcrum Metals 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 Fulcrum Metals and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulcrum Metals PLC and Mynaric AG, you can compare the effects of market volatilities on Fulcrum Metals 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 Fulcrum Metals with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Metals and Mynaric AG.
Diversification Opportunities for Fulcrum Metals and Mynaric AG
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fulcrum and Mynaric is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Metals PLC and Mynaric AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mynaric AG and Fulcrum Metals 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 Fulcrum Metals PLC 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 Fulcrum Metals i.e., Fulcrum Metals and Mynaric AG go up and down completely randomly.
Pair Corralation between Fulcrum Metals and Mynaric AG
Assuming the 90 days trading horizon Fulcrum Metals PLC is expected to generate 0.44 times more return on investment than Mynaric AG. However, Fulcrum Metals PLC is 2.25 times less risky than Mynaric AG. It trades about -0.1 of its potential returns per unit of risk. Mynaric AG is currently generating about -0.06 per unit of risk. If you would invest 1,575 in Fulcrum Metals PLC on August 31, 2024 and sell it today you would lose (825.00) from holding Fulcrum Metals PLC or give up 52.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Fulcrum Metals PLC vs. Mynaric AG
Performance |
| Timeline |
| Fulcrum Metals PLC |
| Mynaric AG |
Fulcrum Metals and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulcrum Metals and Mynaric AG
The main advantage of trading using opposite Fulcrum Metals and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulcrum Metals 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.| Fulcrum Metals vs. Centamin PLC | Fulcrum Metals vs. Anglo Asian Mining | Fulcrum Metals vs. Metals Exploration Plc |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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