Correlation Between Intel and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Mynaric AG ADR, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Mynaric AG.
Diversification Opportunities for Intel and Mynaric AG
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intel and Mynaric is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Intel 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 Intel 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 Intel 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 Intel i.e., Intel and Mynaric AG go up and down completely randomly.
Pair Corralation between Intel and Mynaric AG
Given the investment horizon of 90 days Intel is expected to generate 2.75 times less return on investment than Mynaric AG. But when comparing it to its historical volatility, Intel is 2.32 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 0.13 of returns per unit of risk over similar time horizon. If you would invest 94.00 in Mynaric AG ADR on August 31, 2024 and sell it today you would earn a total of 45.00 from holding Mynaric AG ADR or generate 47.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Mynaric AG ADR
Performance |
| Timeline |
| Intel |
| Mynaric AG ADR |
Intel and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Mynaric AG
The main advantage of trading using opposite Intel and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.The idea behind Intel and Mynaric AG ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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