Correlation Between Mynaric AG and Nokia
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Nokia 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 Nokia 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 Nokia, you can compare the effects of market volatilities on Mynaric AG and Nokia 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 Nokia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Nokia.
Diversification Opportunities for Mynaric AG and Nokia
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mynaric and Nokia is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Nokia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia 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 Nokia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia has no effect on the direction of Mynaric AG i.e., Mynaric AG and Nokia go up and down completely randomly.
Pair Corralation between Mynaric AG and Nokia
Given the investment horizon of 90 days Mynaric AG ADR is expected to generate 2.2 times more return on investment than Nokia. However, Mynaric AG is 2.2 times more volatile than Nokia. It trades about 0.19 of its potential returns per unit of risk. Nokia is currently generating about -0.26 per unit of risk. If you would invest 114.00 in Mynaric AG ADR on August 26, 2024 and sell it today you would earn a total of 23.00 from holding Mynaric AG ADR or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mynaric AG ADR vs. Nokia
Performance |
| Timeline |
| Mynaric AG ADR |
| Nokia |
Mynaric AG and Nokia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and Nokia
The main advantage of trading using opposite Mynaric AG and Nokia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Nokia 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 Nokia will offset losses from the drop in Nokia's long position.| Mynaric AG vs. Plexus Corp | Mynaric AG vs. Benchmark Electronics | Mynaric AG vs. Jabil Circuit | Mynaric AG vs. Sanmina |
| Nokia vs. Mynaric AG ADR | Nokia vs. Knowles Cor | Nokia vs. Comtech Telecommunications Corp | Nokia vs. Ituran Location and |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |