Correlation Between TPT Global and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both TPT Global 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 TPT Global and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPT Global Tech and Mynaric AG ADR, you can compare the effects of market volatilities on TPT Global 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 TPT Global with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPT Global and Mynaric AG.
Diversification Opportunities for TPT Global and Mynaric AG
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TPT and Mynaric is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding TPT Global Tech 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 TPT Global 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 TPT Global Tech 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 TPT Global i.e., TPT Global and Mynaric AG go up and down completely randomly.
Pair Corralation between TPT Global and Mynaric AG
Given the investment horizon of 90 days TPT Global Tech is expected to generate 1.05 times more return on investment than Mynaric AG. However, TPT Global is 1.05 times more volatile than Mynaric AG ADR. It trades about 0.14 of its potential returns per unit of risk. Mynaric AG ADR is currently generating about -0.07 per unit of risk. If you would invest 0.01 in TPT Global Tech on November 27, 2024 and sell it today you would earn a total of 0.00 from holding TPT Global Tech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TPT Global Tech vs. Mynaric AG ADR
Performance |
| Timeline |
| TPT Global Tech |
| Mynaric AG ADR |
TPT Global and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPT Global and Mynaric AG
The main advantage of trading using opposite TPT Global and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPT Global 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.| TPT Global vs. Franklin Wireless Corp | TPT Global vs. Wialan Technologies | TPT Global vs. Moving iMage Technologies | TPT Global vs. Comtech Telecommunications Corp |
| Mynaric AG vs. Comtech Telecommunications Corp | Mynaric AG vs. KVH Industries | Mynaric AG vs. Silicom | Mynaric AG vs. Knowles Cor |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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