Correlation Between Mynaric AG and Moving IMage

Can any of the company-specific risk be diversified away by investing in both Mynaric AG and Moving IMage 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 Moving IMage 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 Moving iMage Technologies, you can compare the effects of market volatilities on Mynaric AG and Moving IMage 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 Moving IMage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mynaric AG and Moving IMage.

Diversification Opportunities for Mynaric AG and Moving IMage

0.54

Correlation Coefficient

Mynaric AG  Moving IMage

Very weak diversification

The 3 months correlation between Mynaric and Moving is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mynaric AG ADR and Moving iMage Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moving iMage 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 Moving IMage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moving iMage Technologies has no effect on the direction of Mynaric AG i.e., Mynaric AG and Moving IMage go up and down completely randomly.

Pair Corralation between Mynaric AG and Moving IMage

Given the investment horizon of 90 days Mynaric AG ADR is expected to generate 0.7 times more return on investment than Moving IMage. However, Mynaric AG ADR is 1.43 times less risky than Moving IMage. It trades about 0.0 of its potential returns per unit of risk. Moving iMage Technologies is currently generating about -0.1 per unit of risk. If you would invest  559.00  in Mynaric AG ADR on January 26, 2024 and sell it today you would lose (31.00) from holding Mynaric AG ADR or give up 5.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Mynaric AG ADR  vs.  Moving iMage Technologies

Mynaric AG ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mynaric AG ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Mynaric AG is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Moving iMage Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moving iMage Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in May 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Mynaric AG and Moving IMage

The main advantage of trading using opposite Mynaric AG and Moving IMage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mynaric AG position performs unexpectedly, Moving IMage 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 Moving IMage will offset losses from the drop in Moving IMage's long position.

The idea behind Mynaric AG ADR and Moving iMage Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.