Correlation Between Intel and Mynaric AG

Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intel and Mynaric AG ADR, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Mynaric AG.

Diversification Opportunities for Intel and Mynaric AG

-0.5

Correlation Coefficient

Intel  Mynaric AG

Very good diversification

The 3 months correlation between Intel and Mynaric is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intel 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 Intel 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 Intel 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 Intel i.e., Intel and Mynaric AG go up and down completely randomly.

Pair Corralation between Intel and Mynaric AG

Given the investment horizon of 90 days Intel is expected to generate 0.16 times more return on investment than Mynaric AG. However, Intel is 6.3 times less risky than Mynaric AG. It trades about 0.09 of its potential returns per unit of risk. Mynaric AG ADR is currently generating about -0.09 per unit of risk. If you would invest  1,982  in Intel on December 29, 2024 and sell it today you would earn a total of  380.00  from holding Intel or generate 19.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	60.66%
Values	Daily Returns

Intel  vs.  Mynaric AG ADR

Intel

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Mynaric AG ADR

Risk-Adjusted Performance

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 conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Intel and Mynaric AG

The main advantage of trading using opposite Intel and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.

The idea behind Intel and Mynaric AG ADR 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.