Correlation Between Mynaric AG and Cambium Networks
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Cambium Networks 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 Cambium Networks 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 Cambium Networks Corp, you can compare the effects of market volatilities on Mynaric AG and Cambium Networks 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 Cambium Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Cambium Networks.
Diversification Opportunities for Mynaric AG and Cambium Networks
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mynaric and Cambium is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Cambium Networks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambium Networks Corp 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 Cambium Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambium Networks Corp has no effect on the direction of Mynaric AG i.e., Mynaric AG and Cambium Networks go up and down completely randomly.
Pair Corralation between Mynaric AG and Cambium Networks
Given the investment horizon of 90 days Mynaric AG ADR is expected to generate 5.45 times more return on investment than Cambium Networks. However, Mynaric AG is 5.45 times more volatile than Cambium Networks Corp. It trades about 0.05 of its potential returns per unit of risk. Cambium Networks Corp is currently generating about 0.2 per unit of risk. If you would invest 44.00 in Mynaric AG ADR on November 18, 2024 and sell it today you would lose (18.00) from holding Mynaric AG ADR or give up 40.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. Cambium Networks Corp
Performance |
| Timeline |
| Mynaric AG ADR |
| Cambium Networks Corp |
Mynaric AG and Cambium Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Cambium Networks
The main advantage of trading using opposite Mynaric AG and Cambium Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Cambium Networks 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 Cambium Networks will offset losses from the drop in Cambium Networks' long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
| Cambium Networks vs. Aviat Networks | Cambium Networks vs. Rimini Street | Cambium Networks vs. Airgain | Cambium Networks vs. Calix Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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