Correlation Between Diamyd Medical and Media
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and Media 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 Media 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 Media and Games, you can compare the effects of market volatilities on Diamyd Medical and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and Media.
Diversification Opportunities for Diamyd Medical and Media
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Diamyd and Media is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and Media go up and down completely randomly.
Pair Corralation between Diamyd Medical and Media
Assuming the 90 days horizon Diamyd Medical is expected to generate 3.35 times less return on investment than Media. In addition to that, Diamyd Medical is 1.37 times more volatile than Media and Games. It trades about 0.04 of its total potential returns per unit of risk. Media and Games is currently generating about 0.18 per unit of volatility. If you would invest 164.00 in Media and Games on September 1, 2024 and sell it today you would earn a total of 177.00 from holding Media and Games or generate 107.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. Media and Games
Performance |
| Timeline |
| Diamyd Medical AB |
| Media and Games |
Diamyd Medical and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and Media
The main advantage of trading using opposite Diamyd Medical and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, Media 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 Media will offset losses from the drop in Media's long position.| Diamyd Medical vs. DXC Technology Co | Diamyd Medical vs. Digilife Technologies Limited | Diamyd Medical vs. Amkor Technology | Diamyd Medical vs. GEAR4MUSIC LS 10 |
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.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |