Correlation Between Mynaric AG and TESSCO Technologies
Can any of the company-specific risk be diversified away by investing in both Mynaric AG and TESSCO Technologies 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 TESSCO Technologies 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 TESSCO Technologies Incorporated, you can compare the effects of market volatilities on Mynaric AG and TESSCO Technologies 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 TESSCO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and TESSCO Technologies.
Diversification Opportunities for Mynaric AG and TESSCO Technologies
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mynaric and TESSCO is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and TESSCO Technologies Incorporat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TESSCO Technologies 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 TESSCO Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TESSCO Technologies has no effect on the direction of Mynaric AG i.e., Mynaric AG and TESSCO Technologies go up and down completely randomly.
Pair Corralation between Mynaric AG and TESSCO Technologies
If you would invest 123.00 in Mynaric AG ADR on August 28, 2024 and sell it today you would earn a total of 16.00 from holding Mynaric AG ADR or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Mynaric AG ADR vs. TESSCO Technologies Incorporat
Performance |
| Timeline |
| Mynaric AG ADR |
| TESSCO Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mynaric AG and TESSCO Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mynaric AG and TESSCO Technologies
The main advantage of trading using opposite Mynaric AG and TESSCO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, TESSCO Technologies 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 TESSCO Technologies will offset losses from the drop in TESSCO Technologies' long position.| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
| TESSCO Technologies vs. Mynaric AG ADR | TESSCO Technologies vs. Knowles Cor | TESSCO Technologies vs. Comtech Telecommunications Corp | TESSCO Technologies 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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