Correlation Between CSL and Diamyd Medical
Can any of the company-specific risk be diversified away by investing in both CSL and Diamyd Medical 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 CSL and Diamyd Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSL LTD SPONADR and Diamyd Medical AB, you can compare the effects of market volatilities on CSL and Diamyd Medical 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 CSL with a short position of Diamyd Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and Diamyd Medical.
Diversification Opportunities for CSL and Diamyd Medical
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSL and Diamyd is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding CSL LTD SPONADR and Diamyd Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamyd Medical AB and CSL 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 CSL LTD SPONADR are associated (or correlated) with Diamyd Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamyd Medical AB has no effect on the direction of CSL i.e., CSL and Diamyd Medical go up and down completely randomly.
Pair Corralation between CSL and Diamyd Medical
If you would invest (100.00) in CSL LTD SPONADR on August 25, 2024 and sell it today you would earn a total of 100.00 from holding CSL LTD SPONADR or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
CSL LTD SPONADR vs. Diamyd Medical AB
Performance |
| Timeline |
| CSL LTD SPONADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Diamyd Medical AB |
CSL and Diamyd Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSL and Diamyd Medical
The main advantage of trading using opposite CSL and Diamyd Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL position performs unexpectedly, Diamyd Medical 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 Diamyd Medical will offset losses from the drop in Diamyd Medical's long position.| CSL vs. SEALED AIR | CSL vs. Apollo Investment Corp | CSL vs. ECHO INVESTMENT ZY | CSL vs. Wizz Air Holdings |
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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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