Correlation Between Mynaric AG and Neonode
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Neonode 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 Neonode 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 Neonode, you can compare the effects of market volatilities on Mynaric AG and Neonode 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 Neonode. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Neonode.
Diversification Opportunities for Mynaric AG and Neonode
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mynaric and Neonode is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Neonode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neonode 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 Neonode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neonode has no effect on the direction of Mynaric AG i.e., Mynaric AG and Neonode go up and down completely randomly.
Pair Corralation between Mynaric AG and Neonode
Given the investment horizon of 90 days Mynaric AG ADR is expected to under-perform the Neonode. In addition to that, Mynaric AG is 1.24 times more volatile than Neonode. It trades about -0.05 of its total potential returns per unit of risk. Neonode is currently generating about 0.12 per unit of volatility. If you would invest 166.00 in Neonode on November 3, 2024 and sell it today you would earn a total of 685.00 from holding Neonode or generate 412.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. Neonode
Performance |
| Timeline |
| Mynaric AG ADR |
| Neonode |
Mynaric AG and Neonode Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Neonode
The main advantage of trading using opposite Mynaric AG and Neonode positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Neonode 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 Neonode will offset losses from the drop in Neonode's long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
| Neonode vs. LightPath Technologies | Neonode vs. Methode Electronics | Neonode vs. OSI Systems | Neonode vs. Plexus Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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