Correlation Between Diamyd Medical and ASTRA INTERNATIONAL
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL, you can compare the effects of market volatilities on Diamyd Medical and ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and ASTRA INTERNATIONAL.
Diversification Opportunities for Diamyd Medical and ASTRA INTERNATIONAL
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Diamyd and ASTRA is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and ASTRA INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRA INTERNATIONAL has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and ASTRA INTERNATIONAL go up and down completely randomly.
Pair Corralation between Diamyd Medical and ASTRA INTERNATIONAL
Assuming the 90 days horizon Diamyd Medical AB is expected to under-perform the ASTRA INTERNATIONAL. In addition to that, Diamyd Medical is 1.76 times more volatile than ASTRA INTERNATIONAL. It trades about -0.07 of its total potential returns per unit of risk. ASTRA INTERNATIONAL is currently generating about -0.12 per unit of volatility. If you would invest 28.00 in ASTRA INTERNATIONAL on January 14, 2025 and sell it today you would lose (1.00) from holding ASTRA INTERNATIONAL or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. ASTRA INTERNATIONAL
Performance |
| Timeline |
| Diamyd Medical AB |
| ASTRA INTERNATIONAL |
Diamyd Medical and ASTRA INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and ASTRA INTERNATIONAL
The main advantage of trading using opposite Diamyd Medical and ASTRA INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL will offset losses from the drop in ASTRA INTERNATIONAL's long position.| Diamyd Medical vs. Southern Cross Media | Diamyd Medical vs. GRENKELEASING Dusseldorf | Diamyd Medical vs. Geely Automobile Holdings | Diamyd Medical vs. Air Lease |
| ASTRA INTERNATIONAL vs. Scottish Mortgage Investment | ASTRA INTERNATIONAL vs. Liberty Broadband | ASTRA INTERNATIONAL vs. ECHO INVESTMENT ZY | ASTRA INTERNATIONAL vs. MGIC INVESTMENT |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |