Correlation Between Mynaric AG and Clearfield
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Clearfield 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 Clearfield 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 Clearfield, you can compare the effects of market volatilities on Mynaric AG and Clearfield 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 Clearfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Clearfield.
Diversification Opportunities for Mynaric AG and Clearfield
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mynaric and Clearfield is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Clearfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearfield 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 Clearfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearfield has no effect on the direction of Mynaric AG i.e., Mynaric AG and Clearfield go up and down completely randomly.
Pair Corralation between Mynaric AG and Clearfield
Given the investment horizon of 90 days Mynaric AG ADR is expected to generate 1.93 times more return on investment than Clearfield. However, Mynaric AG is 1.93 times more volatile than Clearfield. It trades about 0.0 of its potential returns per unit of risk. Clearfield is currently generating about -0.07 per unit of risk. If you would invest 400.00 in Mynaric AG ADR on August 27, 2024 and sell it today you would lose (263.00) from holding Mynaric AG ADR or give up 65.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. Clearfield
Performance |
| Timeline |
| Mynaric AG ADR |
| Clearfield |
Mynaric AG and Clearfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Clearfield
The main advantage of trading using opposite Mynaric AG and Clearfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Clearfield 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 Clearfield will offset losses from the drop in Clearfield's long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
| Clearfield vs. Ichor Holdings | Clearfield vs. Fabrinet | Clearfield vs. Hello Group | Clearfield vs. Ultra Clean Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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