Correlation Between Diamyd Medical and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and Apollo 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 Diamyd Medical and Apollo Medical 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 Apollo Medical Holdings, you can compare the effects of market volatilities on Diamyd Medical and Apollo 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 Diamyd Medical with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and Apollo Medical.
Diversification Opportunities for Diamyd Medical and Apollo Medical
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Diamyd and Apollo is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and Apollo Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Medical Holdings 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 Apollo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Medical Holdings has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and Apollo Medical go up and down completely randomly.
Pair Corralation between Diamyd Medical and Apollo Medical
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 3.15 times more return on investment than Apollo Medical. However, Diamyd Medical is 3.15 times more volatile than Apollo Medical Holdings. It trades about 0.02 of its potential returns per unit of risk. Apollo Medical Holdings is currently generating about 0.01 per unit of risk. If you would invest 114.00 in Diamyd Medical AB on September 1, 2024 and sell it today you would lose (7.00) from holding Diamyd Medical AB or give up 6.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. Apollo Medical Holdings
Performance |
| Timeline |
| Diamyd Medical AB |
| Apollo Medical Holdings |
Diamyd Medical and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and Apollo Medical
The main advantage of trading using opposite Diamyd Medical and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, Apollo 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 Apollo Medical will offset losses from the drop in Apollo Medical's long position.| Diamyd Medical vs. DXC Technology Co | Diamyd Medical vs. Digilife Technologies Limited | Diamyd Medical vs. Amkor Technology | Diamyd Medical vs. GEAR4MUSIC LS 10 |
| Apollo Medical vs. WillScot Mobile Mini | Apollo Medical vs. Iridium Communications | Apollo Medical vs. Rogers Communications | Apollo Medical vs. Zijin Mining Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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