Correlation Between Diamyd Medical and HAVILAH RESOURCES
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and HAVILAH RESOURCES 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 HAVILAH RESOURCES 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 HAVILAH RESOURCES, you can compare the effects of market volatilities on Diamyd Medical and HAVILAH RESOURCES 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 HAVILAH RESOURCES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and HAVILAH RESOURCES.
Diversification Opportunities for Diamyd Medical and HAVILAH RESOURCES
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Diamyd and HAVILAH is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and HAVILAH RESOURCES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAVILAH RESOURCES 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 HAVILAH RESOURCES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAVILAH RESOURCES has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and HAVILAH RESOURCES go up and down completely randomly.
Pair Corralation between Diamyd Medical and HAVILAH RESOURCES
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 1.07 times more return on investment than HAVILAH RESOURCES. However, Diamyd Medical is 1.07 times more volatile than HAVILAH RESOURCES. It trades about 0.04 of its potential returns per unit of risk. HAVILAH RESOURCES is currently generating about 0.02 per unit of risk. If you would invest 101.00 in Diamyd Medical AB on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Diamyd Medical AB or generate 10.89% 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. HAVILAH RESOURCES
Performance |
| Timeline |
| Diamyd Medical AB |
| HAVILAH RESOURCES |
Diamyd Medical and HAVILAH RESOURCES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and HAVILAH RESOURCES
The main advantage of trading using opposite Diamyd Medical and HAVILAH RESOURCES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, HAVILAH RESOURCES 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 HAVILAH RESOURCES will offset losses from the drop in HAVILAH RESOURCES's long position.| Diamyd Medical vs. WIMFARM SA EO | Diamyd Medical vs. Tencent Music Entertainment | Diamyd Medical vs. ULTRA CLEAN HLDGS | Diamyd Medical vs. AGRICULTBK HADR25 YC |
| HAVILAH RESOURCES vs. Entravision Communications | HAVILAH RESOURCES vs. ADRIATIC METALS LS 013355 | HAVILAH RESOURCES vs. LION ONE METALS | HAVILAH RESOURCES vs. DiamondRock Hospitality |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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