Correlation Between Mynaric AG and Amplitech
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Amplitech 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 Mynaric AG and Amplitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mynaric AG ADR and Amplitech Group, you can compare the effects of market volatilities on Mynaric AG and Amplitech 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 Mynaric AG with a short position of Amplitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Amplitech.
Diversification Opportunities for Mynaric AG and Amplitech
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mynaric and Amplitech is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Amplitech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitech Group and Mynaric AG 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 Mynaric AG ADR are associated (or correlated) with Amplitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplitech Group has no effect on the direction of Mynaric AG i.e., Mynaric AG and Amplitech go up and down completely randomly.
Pair Corralation between Mynaric AG and Amplitech
Given the investment horizon of 90 days Mynaric AG ADR is expected to generate 0.85 times more return on investment than Amplitech. However, Mynaric AG ADR is 1.18 times less risky than Amplitech. It trades about 0.08 of its potential returns per unit of risk. Amplitech Group is currently generating about 0.05 per unit of risk. If you would invest 44.00 in Mynaric AG ADR on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Mynaric AG ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. Amplitech Group
Performance |
| Timeline |
| Mynaric AG ADR |
| Amplitech Group |
Mynaric AG and Amplitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Amplitech
The main advantage of trading using opposite Mynaric AG and Amplitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Amplitech 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 Amplitech will offset losses from the drop in Amplitech's long position.| Mynaric AG vs. Sanmina | Mynaric AG vs. Plexus Corp | Mynaric AG vs. Benchmark Electronics | Mynaric AG vs. Integrated Media Technology |
| Amplitech vs. AmpliTech Group | Amplitech vs. AAC Technologies Holdings | Amplitech vs. Aerkomm | Amplitech vs. Airgain |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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