Correlation Between Diamyd Medical and INTERSHOP Communications
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By analyzing existing cross correlation between Diamyd Medical AB and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Diamyd Medical and INTERSHOP Communications 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 INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and INTERSHOP Communications.
Diversification Opportunities for Diamyd Medical and INTERSHOP Communications
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Diamyd and INTERSHOP is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications 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 INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Diamyd Medical and INTERSHOP Communications
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 1.46 times more return on investment than INTERSHOP Communications. However, Diamyd Medical is 1.46 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.32 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.02 per unit of risk. If you would invest 130.00 in Diamyd Medical AB on October 12, 2024 and sell it today you would earn a total of 26.00 from holding Diamyd Medical AB or generate 20.0% 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. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Diamyd Medical AB |
| INTERSHOP Communications |
Diamyd Medical and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and INTERSHOP Communications
The main advantage of trading using opposite Diamyd Medical and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.| Diamyd Medical vs. TOWNSQUARE MEDIA INC | Diamyd Medical vs. PENN Entertainment | Diamyd Medical vs. GOODYEAR T RUBBER | Diamyd Medical vs. Ubisoft Entertainment SA |
| INTERSHOP Communications vs. ONWARD MEDICAL BV | INTERSHOP Communications vs. Grupo Carso SAB | INTERSHOP Communications vs. Diamyd Medical AB | INTERSHOP Communications vs. Planet Fitness |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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