Correlation Between Diamyd Medical and CEOTRONICS (CEKSG)
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) 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 CEOTRONICS, you can compare the effects of market volatilities on Diamyd Medical and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and CEOTRONICS (CEKSG).
Diversification Opportunities for Diamyd Medical and CEOTRONICS (CEKSG)
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Diamyd and CEOTRONICS is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS (CEKSG) has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and CEOTRONICS (CEKSG) go up and down completely randomly.
Pair Corralation between Diamyd Medical and CEOTRONICS (CEKSG)
Assuming the 90 days horizon Diamyd Medical is expected to generate 4.11 times less return on investment than CEOTRONICS (CEKSG). In addition to that, Diamyd Medical is 1.48 times more volatile than CEOTRONICS. It trades about 0.05 of its total potential returns per unit of risk. CEOTRONICS is currently generating about 0.29 per unit of volatility. If you would invest 515.00 in CEOTRONICS on September 2, 2024 and sell it today you would earn a total of 105.00 from holding CEOTRONICS or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. CEOTRONICS
Performance |
| Timeline |
| Diamyd Medical AB |
| CEOTRONICS (CEKSG) |
Diamyd Medical and CEOTRONICS (CEKSG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and CEOTRONICS (CEKSG)
The main advantage of trading using opposite Diamyd Medical and CEOTRONICS (CEKSG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) will offset losses from the drop in CEOTRONICS (CEKSG)'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 |
| CEOTRONICS (CEKSG) vs. Caltagirone SpA | CEOTRONICS (CEKSG) vs. LEGACY IRON ORE | CEOTRONICS (CEKSG) vs. Pebblebrook Hotel Trust | CEOTRONICS (CEKSG) vs. Choice Hotels International |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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