Correlation Between TESSCO Technologies and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both TESSCO Technologies 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 TESSCO Technologies and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TESSCO Technologies Incorporated and Mynaric AG ADR, you can compare the effects of market volatilities on TESSCO Technologies 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 TESSCO Technologies with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of TESSCO Technologies and Mynaric AG.
Diversification Opportunities for TESSCO Technologies and Mynaric AG
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TESSCO and Mynaric is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding TESSCO Technologies Incorporat 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 TESSCO Technologies 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 TESSCO Technologies Incorporated 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 TESSCO Technologies i.e., TESSCO Technologies and Mynaric AG go up and down completely randomly.
Pair Corralation between TESSCO Technologies and Mynaric AG
If you would invest 94.00 in Mynaric AG ADR on November 2, 2024 and sell it today you would lose (46.00) from holding Mynaric AG ADR or give up 48.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.97% |
| Values | Daily Returns |
TESSCO Technologies Incorporat vs. Mynaric AG ADR
Performance |
| Timeline |
| TESSCO Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mynaric AG ADR |
TESSCO Technologies and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TESSCO Technologies and Mynaric AG
The main advantage of trading using opposite TESSCO Technologies and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TESSCO Technologies 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.| TESSCO Technologies vs. Mynaric AG ADR | TESSCO Technologies vs. Knowles Cor | TESSCO Technologies vs. Comtech Telecommunications Corp | TESSCO Technologies vs. Ituran Location and |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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