Correlation Between Mynaric AG and Ituran Location
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Ituran Location 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 Ituran Location 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 Ituran Location and, you can compare the effects of market volatilities on Mynaric AG and Ituran Location 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 Ituran Location. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Ituran Location.
Diversification Opportunities for Mynaric AG and Ituran Location
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mynaric and Ituran is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Ituran Location and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ituran Location 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 Ituran Location. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ituran Location has no effect on the direction of Mynaric AG i.e., Mynaric AG and Ituran Location go up and down completely randomly.
Pair Corralation between Mynaric AG and Ituran Location
Given the investment horizon of 90 days Mynaric AG ADR is expected to under-perform the Ituran Location. In addition to that, Mynaric AG is 5.23 times more volatile than Ituran Location and. It trades about -0.07 of its total potential returns per unit of risk. Ituran Location and is currently generating about 0.04 per unit of volatility. If you would invest 2,693 in Ituran Location and on August 24, 2024 and sell it today you would earn a total of 157.00 from holding Ituran Location and or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. Ituran Location and
Performance |
| Timeline |
| Mynaric AG ADR |
| Ituran Location |
Mynaric AG and Ituran Location Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Ituran Location
The main advantage of trading using opposite Mynaric AG and Ituran Location positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Ituran Location 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 Ituran Location will offset losses from the drop in Ituran Location's long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
| Ituran Location vs. Silicom | Ituran Location vs. Allot Communications | Ituran Location vs. Sapiens International | Ituran Location vs. Formula Systems 1985 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |