Correlation Between Mynaric AG and Harmonic
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Harmonic 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 Harmonic 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 Harmonic, you can compare the effects of market volatilities on Mynaric AG and Harmonic 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 Harmonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Harmonic.
Diversification Opportunities for Mynaric AG and Harmonic
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mynaric and Harmonic is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Harmonic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmonic 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 Harmonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmonic has no effect on the direction of Mynaric AG i.e., Mynaric AG and Harmonic go up and down completely randomly.
Pair Corralation between Mynaric AG and Harmonic
Given the investment horizon of 90 days Mynaric AG ADR is expected to under-perform the Harmonic. In addition to that, Mynaric AG is 6.88 times more volatile than Harmonic. It trades about -0.15 of its total potential returns per unit of risk. Harmonic is currently generating about -0.35 per unit of volatility. If you would invest 1,308 in Harmonic on November 2, 2024 and sell it today you would lose (173.00) from holding Harmonic or give up 13.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. Harmonic
Performance |
| Timeline |
| Mynaric AG ADR |
| Harmonic |
Mynaric AG and Harmonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Harmonic
The main advantage of trading using opposite Mynaric AG and Harmonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Harmonic 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 Harmonic will offset losses from the drop in Harmonic's long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
| Harmonic vs. NETGEAR | Harmonic vs. Juniper Networks | Harmonic vs. Digi International | Harmonic vs. Clearfield |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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