Correlation Between Diamyd Medical and HAPAG LLOYD
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and HAPAG LLOYD 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 HAPAG LLOYD 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 HAPAG LLOYD UNSPADR 12, you can compare the effects of market volatilities on Diamyd Medical and HAPAG LLOYD 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 HAPAG LLOYD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and HAPAG LLOYD.
Diversification Opportunities for Diamyd Medical and HAPAG LLOYD
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Diamyd and HAPAG is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and HAPAG LLOYD UNSPADR 12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAPAG LLOYD UNSPADR 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 HAPAG LLOYD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAPAG LLOYD UNSPADR has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and HAPAG LLOYD go up and down completely randomly.
Pair Corralation between Diamyd Medical and HAPAG LLOYD
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 1.29 times more return on investment than HAPAG LLOYD. However, Diamyd Medical is 1.29 times more volatile than HAPAG LLOYD UNSPADR 12. It trades about 0.16 of its potential returns per unit of risk. HAPAG LLOYD UNSPADR 12 is currently generating about -0.33 per unit of risk. If you would invest 139.00 in Diamyd Medical AB on October 25, 2024 and sell it today you would earn a total of 13.00 from holding Diamyd Medical AB or generate 9.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. HAPAG LLOYD UNSPADR 12
Performance |
| Timeline |
| Diamyd Medical AB |
| HAPAG LLOYD UNSPADR |
Diamyd Medical and HAPAG LLOYD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and HAPAG LLOYD
The main advantage of trading using opposite Diamyd Medical and HAPAG LLOYD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, HAPAG LLOYD 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 HAPAG LLOYD will offset losses from the drop in HAPAG LLOYD's long position.| Diamyd Medical vs. Easy Software AG | Diamyd Medical vs. Check Point Software | Diamyd Medical vs. FIRST SHIP LEASE | Diamyd Medical vs. United Rentals |
| HAPAG LLOYD vs. NTT DATA | HAPAG LLOYD vs. DATATEC LTD 2 | HAPAG LLOYD vs. INFORMATION SVC GRP | HAPAG LLOYD vs. Linedata Services SA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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