Correlation Between Iteris and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Iteris 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 Iteris and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iteris Inc and Mynaric AG ADR, you can compare the effects of market volatilities on Iteris 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 Iteris with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iteris and Mynaric AG.
Diversification Opportunities for Iteris and Mynaric AG
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Iteris and Mynaric is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Iteris 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 Iteris 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 Iteris 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 Iteris i.e., Iteris and Mynaric AG go up and down completely randomly.
Pair Corralation between Iteris and Mynaric AG
Considering the 90-day investment horizon Iteris Inc is expected to generate 1.19 times more return on investment than Mynaric AG. However, Iteris is 1.19 times more volatile than Mynaric AG ADR. It trades about 0.37 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 22,865 in Iteris Inc on August 31, 2024 and sell it today you would earn a total of 3,784 from holding Iteris Inc or generate 16.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 36.36% |
| Values | Daily Returns |
Iteris Inc vs. Mynaric AG ADR
Performance |
| Timeline |
| Iteris Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Mynaric AG ADR |
Iteris and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iteris and Mynaric AG
The main advantage of trading using opposite Iteris and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iteris 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.| Iteris vs. Optical Cable | Iteris vs. KVH Industries | Iteris vs. Knowles Cor | Iteris vs. Comtech Telecommunications Corp |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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