Correlation Between SatixFy Communications and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both SatixFy Communications and Mynaric AG 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 SatixFy Communications and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SatixFy Communications and Mynaric AG ADR, you can compare the effects of market volatilities on SatixFy Communications and Mynaric AG 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 SatixFy Communications with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SatixFy Communications and Mynaric AG.
Diversification Opportunities for SatixFy Communications and Mynaric AG
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SatixFy and Mynaric is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SatixFy Communications and Mynaric AG ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mynaric AG ADR and SatixFy Communications 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 SatixFy Communications are associated (or correlated) with Mynaric AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mynaric AG ADR has no effect on the direction of SatixFy Communications i.e., SatixFy Communications and Mynaric AG go up and down completely randomly.
Pair Corralation between SatixFy Communications and Mynaric AG
Given the investment horizon of 90 days SatixFy Communications is expected to generate 0.87 times more return on investment than Mynaric AG. However, SatixFy Communications is 1.15 times less risky than Mynaric AG. It trades about 0.07 of its potential returns per unit of risk. Mynaric AG ADR is currently generating about -0.03 per unit of risk. If you would invest 42.00 in SatixFy Communications on August 28, 2024 and sell it today you would earn a total of 51.00 from holding SatixFy Communications or generate 121.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SatixFy Communications vs. Mynaric AG ADR
Performance |
| Timeline |
| SatixFy Communications |
| Mynaric AG ADR |
SatixFy Communications and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SatixFy Communications and Mynaric AG
The main advantage of trading using opposite SatixFy Communications and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SatixFy Communications position performs unexpectedly, Mynaric AG 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 Mynaric AG will offset losses from the drop in Mynaric AG's long position.| SatixFy Communications vs. Actelis Networks | SatixFy Communications vs. ClearOne | SatixFy Communications vs. Siyata Mobile | SatixFy Communications vs. Mobilicom Limited Warrants |
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.
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