Correlation Between Mynaric AG and CommScope Holding
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and CommScope Holding 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 CommScope Holding 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 CommScope Holding Co, you can compare the effects of market volatilities on Mynaric AG and CommScope Holding 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 CommScope Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and CommScope Holding.
Diversification Opportunities for Mynaric AG and CommScope Holding
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mynaric and CommScope is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and CommScope Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CommScope Holding 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 CommScope Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CommScope Holding has no effect on the direction of Mynaric AG i.e., Mynaric AG and CommScope Holding go up and down completely randomly.
Pair Corralation between Mynaric AG and CommScope Holding
Given the investment horizon of 90 days Mynaric AG ADR is expected to under-perform the CommScope Holding. In addition to that, Mynaric AG is 1.63 times more volatile than CommScope Holding Co. It trades about -0.03 of its total potential returns per unit of risk. CommScope Holding Co is currently generating about 0.03 per unit of volatility. If you would invest 451.00 in CommScope Holding Co on January 15, 2025 and sell it today you would lose (107.00) from holding CommScope Holding Co or give up 23.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.91% |
| Values | Daily Returns |
Mynaric AG ADR vs. CommScope Holding Co
Performance |
| Timeline |
| Mynaric AG ADR |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| CommScope Holding |
Mynaric AG and CommScope Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and CommScope Holding
The main advantage of trading using opposite Mynaric AG and CommScope Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, CommScope Holding 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 CommScope Holding will offset losses from the drop in CommScope Holding's long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
| CommScope Holding vs. Harmonic | CommScope Holding vs. NETGEAR | CommScope Holding vs. Comtech Telecommunications Corp | CommScope Holding vs. ADTRAN 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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