Correlation Between Mynaric AG and Electronic Systems
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Electronic Systems 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 Electronic Systems 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 Electronic Systems Technology, you can compare the effects of market volatilities on Mynaric AG and Electronic Systems 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 Electronic Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Electronic Systems.
Diversification Opportunities for Mynaric AG and Electronic Systems
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mynaric and Electronic is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Electronic Systems Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Systems 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 Electronic Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Systems has no effect on the direction of Mynaric AG i.e., Mynaric AG and Electronic Systems go up and down completely randomly.
Pair Corralation between Mynaric AG and Electronic Systems
Given the investment horizon of 90 days Mynaric AG ADR is expected to under-perform the Electronic Systems. In addition to that, Mynaric AG is 1.58 times more volatile than Electronic Systems Technology. It trades about -0.03 of its total potential returns per unit of risk. Electronic Systems Technology is currently generating about -0.02 per unit of volatility. If you would invest 28.00 in Electronic Systems Technology on November 27, 2024 and sell it today you would lose (21.70) from holding Electronic Systems Technology or give up 77.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. Electronic Systems Technology
Performance |
| Timeline |
| Mynaric AG ADR |
| Electronic Systems |
Mynaric AG and Electronic Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Electronic Systems
The main advantage of trading using opposite Mynaric AG and Electronic Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Electronic Systems 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 Electronic Systems will offset losses from the drop in Electronic Systems' long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
| Electronic Systems vs. BeWhere Holdings | Electronic Systems vs. Frequency Electronics | Electronic Systems vs. Wialan Technologies | Electronic Systems vs. TPT Global Tech |
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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