Correlation Between MYT Netherlands and Cyren

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

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

Diversification Opportunities for MYT Netherlands and Cyren

0.0

Correlation Coefficient

MYT Netherlands  Cyren

Pay attention - limited upside

The 3 months correlation between MYT and Cyren is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MYT Netherlands Parent and Cyren in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyren and MYT Netherlands 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 MYT Netherlands Parent are associated (or correlated) with Cyren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyren has no effect on the direction of MYT Netherlands i.e., MYT Netherlands and Cyren go up and down completely randomly.

Pair Corralation between MYT Netherlands and Cyren

If you would invest  1,151  in MYT Netherlands Parent on October 11, 2024 and sell it today you would lose (404.00) from holding MYT Netherlands Parent or give up 35.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

MYT Netherlands Parent  vs.  Cyren

MYT Netherlands Parent

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MYT Netherlands Parent has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, MYT Netherlands is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Cyren

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cyren has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Cyren is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with MYT Netherlands and Cyren

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

The idea behind MYT Netherlands Parent and Cyren 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.