Correlation Between Ituran Location and Mynaric AG
Can any of the company-specific risk be diversified away by investing in both Ituran Location 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 Ituran Location and Mynaric AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ituran Location and and Mynaric AG ADR, you can compare the effects of market volatilities on Ituran Location 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 Ituran Location with a short position of Mynaric AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ituran Location and Mynaric AG.
Diversification Opportunities for Ituran Location and Mynaric AG
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ituran and Mynaric is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ituran Location and 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 Ituran Location 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 Ituran Location and 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 Ituran Location i.e., Ituran Location and Mynaric AG go up and down completely randomly.
Pair Corralation between Ituran Location and Mynaric AG
If you would invest 3,637 in Ituran Location and on March 27, 2025 and sell it today you would earn a total of 34.00 from holding Ituran Location and or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
Ituran Location and vs. Mynaric AG ADR
Performance |
| Timeline |
| Ituran Location |
| Mynaric AG ADR |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Ituran Location and Mynaric AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ituran Location and Mynaric AG
The main advantage of trading using opposite Ituran Location and Mynaric AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ituran Location 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.| Ituran Location vs. Silicom | Ituran Location vs. Allot Communications | Ituran Location vs. Sapiens International | Ituran Location vs. Formula Systems 1985 |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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