Correlation Between Diamyd Medical and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and ANTA SPORTS 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Diamyd Medical and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and ANTA SPORTS.
Diversification Opportunities for Diamyd Medical and ANTA SPORTS
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Diamyd and ANTA is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Diamyd Medical and ANTA SPORTS
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 1.35 times more return on investment than ANTA SPORTS. However, Diamyd Medical is 1.35 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.03 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.03 per unit of risk. If you would invest 97.00 in Diamyd Medical AB on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Diamyd Medical AB or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Diamyd Medical AB |
| ANTA SPORTS PRODUCT |
Diamyd Medical and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and ANTA SPORTS
The main advantage of trading using opposite Diamyd Medical and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| Diamyd Medical vs. CSL Limited | Diamyd Medical vs. Superior Plus Corp | Diamyd Medical vs. NMI Holdings | Diamyd Medical vs. Origin Agritech |
| ANTA SPORTS vs. ALTAIR RES INC | ANTA SPORTS vs. Alaska Air Group | ANTA SPORTS vs. Ryanair Holdings plc | ANTA SPORTS vs. Westinghouse Air Brake |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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