Correlation Between Diamyd Medical and CORONGLRES CDIS101
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and CORONGLRES CDIS101 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 Diamyd Medical and CORONGLRES CDIS101 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamyd Medical AB and CORONGLRES CDIS101, you can compare the effects of market volatilities on Diamyd Medical and CORONGLRES CDIS101 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 Diamyd Medical with a short position of CORONGLRES CDIS101. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and CORONGLRES CDIS101.
Diversification Opportunities for Diamyd Medical and CORONGLRES CDIS101
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Diamyd and CORONGLRES is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and CORONGLRES CDIS101 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORONGLRES CDIS101 and Diamyd Medical 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 Diamyd Medical AB are associated (or correlated) with CORONGLRES CDIS101. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORONGLRES CDIS101 has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and CORONGLRES CDIS101 go up and down completely randomly.
Pair Corralation between Diamyd Medical and CORONGLRES CDIS101
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 1.99 times more return on investment than CORONGLRES CDIS101. However, Diamyd Medical is 1.99 times more volatile than CORONGLRES CDIS101. It trades about 0.08 of its potential returns per unit of risk. CORONGLRES CDIS101 is currently generating about -0.07 per unit of risk. If you would invest 58.00 in Diamyd Medical AB on September 14, 2024 and sell it today you would earn a total of 73.00 from holding Diamyd Medical AB or generate 125.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Diamyd Medical AB vs. CORONGLRES CDIS101
Performance |
| Timeline |
| Diamyd Medical AB |
| CORONGLRES CDIS101 |
Diamyd Medical and CORONGLRES CDIS101 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and CORONGLRES CDIS101
The main advantage of trading using opposite Diamyd Medical and CORONGLRES CDIS101 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, CORONGLRES CDIS101 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 CORONGLRES CDIS101 will offset losses from the drop in CORONGLRES CDIS101's long position.| Diamyd Medical vs. Moderna | Diamyd Medical vs. BioNTech SE | Diamyd Medical vs. Superior Plus Corp | Diamyd Medical vs. SIVERS SEMICONDUCTORS AB |
| CORONGLRES CDIS101 vs. SCOTT TECHNOLOGY | CORONGLRES CDIS101 vs. Japan Medical Dynamic | CORONGLRES CDIS101 vs. Microbot Medical | CORONGLRES CDIS101 vs. Diamyd Medical AB |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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