Correlation Between SupplyMe Capital and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both SupplyMe Capital 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 SupplyMe Capital and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SupplyMe Capital PLC and Mynaric AG, you can compare the effects of market volatilities on SupplyMe Capital 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 SupplyMe Capital with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and Mynaric AG.
Diversification Opportunities for SupplyMe Capital and Mynaric AG
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SupplyMe and Mynaric is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC and Mynaric AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mynaric AG and SupplyMe Capital 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 SupplyMe Capital PLC 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 has no effect on the direction of SupplyMe Capital i.e., SupplyMe Capital and Mynaric AG go up and down completely randomly.
Pair Corralation between SupplyMe Capital and Mynaric AG
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to under-perform the Mynaric AG. In addition to that, SupplyMe Capital is 1.61 times more volatile than Mynaric AG. It trades about -0.07 of its total potential returns per unit of risk. Mynaric AG is currently generating about -0.06 per unit of volatility. If you would invest 2,500 in Mynaric AG on August 31, 2024 and sell it today you would lose (1,998) from holding Mynaric AG or give up 79.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.75% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. Mynaric AG
Performance |
| Timeline |
| SupplyMe Capital PLC |
| Mynaric AG |
SupplyMe Capital and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SupplyMe Capital and Mynaric AG
The main advantage of trading using opposite SupplyMe Capital and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SupplyMe Capital 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.| SupplyMe Capital vs. BE Semiconductor Industries | SupplyMe Capital vs. Cornish Metals | SupplyMe Capital vs. Endeavour Mining Corp | SupplyMe Capital vs. Summit Materials Cl |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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