Correlation Between Mynaric AG and Desktop Metal
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Desktop Metal 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 Desktop Metal 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 Desktop Metal, you can compare the effects of market volatilities on Mynaric AG and Desktop Metal 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 Desktop Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Desktop Metal.
Diversification Opportunities for Mynaric AG and Desktop Metal
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mynaric and Desktop is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Desktop Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desktop Metal 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 Desktop Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desktop Metal has no effect on the direction of Mynaric AG i.e., Mynaric AG and Desktop Metal go up and down completely randomly.
Pair Corralation between Mynaric AG and Desktop Metal
Given the investment horizon of 90 days Mynaric AG ADR is expected to generate 2.08 times more return on investment than Desktop Metal. However, Mynaric AG is 2.08 times more volatile than Desktop Metal. It trades about 0.13 of its potential returns per unit of risk. Desktop Metal is currently generating about 0.0 per unit of risk. If you would invest 94.00 in Mynaric AG ADR on September 3, 2024 and sell it today you would earn a total of 45.00 from holding Mynaric AG ADR or generate 47.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. Desktop Metal
Performance |
| Timeline |
| Mynaric AG ADR |
| Desktop Metal |
Mynaric AG and Desktop Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Desktop Metal
The main advantage of trading using opposite Mynaric AG and Desktop Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Desktop Metal 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 Desktop Metal will offset losses from the drop in Desktop Metal's long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
| Desktop Metal vs. Nano Dimension | Desktop Metal vs. 3D Systems | Desktop Metal vs. Markforged Holding Corp | Desktop Metal vs. Stratasys |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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