Correlation Between Mynaric AG and DZS
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and DZS 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 DZS 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 DZS Inc, you can compare the effects of market volatilities on Mynaric AG and DZS 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 DZS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and DZS.
Diversification Opportunities for Mynaric AG and DZS
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mynaric and DZS is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and DZS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DZS Inc 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 DZS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DZS Inc has no effect on the direction of Mynaric AG i.e., Mynaric AG and DZS go up and down completely randomly.
Pair Corralation between Mynaric AG and DZS
If you would invest 18.00 in DZS Inc on September 2, 2024 and sell it today you would earn a total of 0.00 from holding DZS Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Mynaric AG ADR vs. DZS Inc
Performance |
| Timeline |
| Mynaric AG ADR |
| DZS Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mynaric AG and DZS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and DZS
The main advantage of trading using opposite Mynaric AG and DZS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, DZS 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 DZS will offset losses from the drop in DZS's long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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