Correlation Between Mynaric AG and ClearOne
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and ClearOne 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 ClearOne 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 ClearOne, you can compare the effects of market volatilities on Mynaric AG and ClearOne 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 ClearOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and ClearOne.
Diversification Opportunities for Mynaric AG and ClearOne
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mynaric and ClearOne is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and ClearOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearOne 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 ClearOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearOne has no effect on the direction of Mynaric AG i.e., Mynaric AG and ClearOne go up and down completely randomly.
Pair Corralation between Mynaric AG and ClearOne
Given the investment horizon of 90 days Mynaric AG ADR is expected to under-perform the ClearOne. But the stock apears to be less risky and, when comparing its historical volatility, Mynaric AG ADR is 1.28 times less risky than ClearOne. The stock trades about -0.03 of its potential returns per unit of risk. The ClearOne is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 36.00 in ClearOne on August 28, 2024 and sell it today you would earn a total of 13.00 from holding ClearOne or generate 36.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. ClearOne
Performance |
| Timeline |
| Mynaric AG ADR |
| ClearOne |
Mynaric AG and ClearOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and ClearOne
The main advantage of trading using opposite Mynaric AG and ClearOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, ClearOne 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 ClearOne will offset losses from the drop in ClearOne's long position.The idea behind Mynaric AG ADR and ClearOne 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.| ClearOne vs. Ichor Holdings | ClearOne vs. Fabrinet | ClearOne vs. Hello Group | ClearOne 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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