Correlation Between Mynaric AG and Digi International
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Digi International 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 Digi International 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 Digi International, you can compare the effects of market volatilities on Mynaric AG and Digi International 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 Digi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Digi International.
Diversification Opportunities for Mynaric AG and Digi International
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mynaric and Digi is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Digi International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digi International 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 Digi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digi International has no effect on the direction of Mynaric AG i.e., Mynaric AG and Digi International go up and down completely randomly.
Pair Corralation between Mynaric AG and Digi International
Given the investment horizon of 90 days Mynaric AG ADR is expected to generate 9.11 times more return on investment than Digi International. However, Mynaric AG is 9.11 times more volatile than Digi International. It trades about 0.11 of its potential returns per unit of risk. Digi International is currently generating about -0.14 per unit of risk. If you would invest 39.00 in Mynaric AG ADR on October 20, 2024 and sell it today you would earn a total of 5.00 from holding Mynaric AG ADR or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. Digi International
Performance |
| Timeline |
| Mynaric AG ADR |
| Digi International |
Mynaric AG and Digi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Digi International
The main advantage of trading using opposite Mynaric AG and Digi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Digi International 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 Digi International will offset losses from the drop in Digi International's long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
| Digi International vs. Extreme Networks | Digi International vs. Ciena Corp | Digi International vs. Harmonic | Digi International vs. Comtech Telecommunications Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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