Correlation Between DiaMedica Therapeutics and Oculis Holding
Can any of the company-specific risk be diversified away by investing in both DiaMedica Therapeutics and Oculis Holding 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 DiaMedica Therapeutics and Oculis Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DiaMedica Therapeutics and Oculis Holding AG, you can compare the effects of market volatilities on DiaMedica Therapeutics and Oculis Holding 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 DiaMedica Therapeutics with a short position of Oculis Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of DiaMedica Therapeutics and Oculis Holding.
Diversification Opportunities for DiaMedica Therapeutics and Oculis Holding
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DiaMedica and Oculis is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding DiaMedica Therapeutics and Oculis Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oculis Holding AG and DiaMedica Therapeutics 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 DiaMedica Therapeutics are associated (or correlated) with Oculis Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oculis Holding AG has no effect on the direction of DiaMedica Therapeutics i.e., DiaMedica Therapeutics and Oculis Holding go up and down completely randomly.
Pair Corralation between DiaMedica Therapeutics and Oculis Holding
Given the investment horizon of 90 days DiaMedica Therapeutics is expected to generate 0.44 times more return on investment than Oculis Holding. However, DiaMedica Therapeutics is 2.26 times less risky than Oculis Holding. It trades about -0.42 of its potential returns per unit of risk. Oculis Holding AG is currently generating about -0.29 per unit of risk. If you would invest 577.00 in DiaMedica Therapeutics on January 13, 2025 and sell it today you would lose (230.00) from holding DiaMedica Therapeutics or give up 39.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
DiaMedica Therapeutics vs. Oculis Holding AG
Performance |
| Timeline |
| DiaMedica Therapeutics |
| Oculis Holding AG |
DiaMedica Therapeutics and Oculis Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DiaMedica Therapeutics and Oculis Holding
The main advantage of trading using opposite DiaMedica Therapeutics and Oculis Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DiaMedica Therapeutics position performs unexpectedly, Oculis Holding 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 Oculis Holding will offset losses from the drop in Oculis Holding's long position.| DiaMedica Therapeutics vs. Milestone Pharmaceuticals | DiaMedica Therapeutics vs. Seres Therapeutics | DiaMedica Therapeutics vs. Inhibikase Therapeutics | DiaMedica Therapeutics vs. Oncolytics Biotech |
| Oculis Holding vs. Intuitive Surgical | Oculis Holding vs. JBG SMITH Properties | Oculis Holding vs. Corporacion America Airports | Oculis Holding vs. Air Lease |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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