Correlation Between Diamyd Medical and ONWARD MEDICAL
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and ONWARD 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 ONWARD 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 ONWARD MEDICAL BV, you can compare the effects of market volatilities on Diamyd Medical and ONWARD 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 ONWARD MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and ONWARD MEDICAL.
Diversification Opportunities for Diamyd Medical and ONWARD MEDICAL
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Diamyd and ONWARD is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and ONWARD MEDICAL BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONWARD MEDICAL BV 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 ONWARD MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONWARD MEDICAL BV has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and ONWARD MEDICAL go up and down completely randomly.
Pair Corralation between Diamyd Medical and ONWARD MEDICAL
Assuming the 90 days horizon Diamyd Medical AB is expected to under-perform the ONWARD MEDICAL. In addition to that, Diamyd Medical is 1.09 times more volatile than ONWARD MEDICAL BV. It trades about -0.11 of its total potential returns per unit of risk. ONWARD MEDICAL BV is currently generating about -0.03 per unit of volatility. If you would invest 461.00 in ONWARD MEDICAL BV on August 29, 2024 and sell it today you would lose (14.00) from holding ONWARD MEDICAL BV or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. ONWARD MEDICAL BV
Performance |
| Timeline |
| Diamyd Medical AB |
| ONWARD MEDICAL BV |
Diamyd Medical and ONWARD MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and ONWARD MEDICAL
The main advantage of trading using opposite Diamyd Medical and ONWARD MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, ONWARD 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 ONWARD MEDICAL will offset losses from the drop in ONWARD MEDICAL's long position.| Diamyd Medical vs. Superior Plus Corp | Diamyd Medical vs. NMI Holdings | Diamyd Medical vs. Origin Agritech | Diamyd Medical vs. SIVERS SEMICONDUCTORS AB |
| ONWARD MEDICAL vs. Superior Plus Corp | ONWARD MEDICAL vs. NMI Holdings | ONWARD MEDICAL vs. Origin Agritech | ONWARD MEDICAL vs. SIVERS SEMICONDUCTORS 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |