Correlation Between Diamyd Medical and Soken Chemical
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and Soken Chemical 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 Soken Chemical 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 Soken Chemical Engineering, you can compare the effects of market volatilities on Diamyd Medical and Soken Chemical 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 Soken Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and Soken Chemical.
Diversification Opportunities for Diamyd Medical and Soken Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Diamyd and Soken is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and Soken Chemical Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soken Chemical Engin 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 Soken Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soken Chemical Engin has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and Soken Chemical go up and down completely randomly.
Pair Corralation between Diamyd Medical and Soken Chemical
If you would invest 134.00 in Diamyd Medical AB on October 17, 2024 and sell it today you would earn a total of 23.00 from holding Diamyd Medical AB or generate 17.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Diamyd Medical AB vs. Soken Chemical Engineering
Performance |
| Timeline |
| Diamyd Medical AB |
| Soken Chemical Engin |
Diamyd Medical and Soken Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and Soken Chemical
The main advantage of trading using opposite Diamyd Medical and Soken Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, Soken Chemical 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 Soken Chemical will offset losses from the drop in Soken Chemical's long position.| Diamyd Medical vs. Sumitomo Mitsui Construction | Diamyd Medical vs. Osisko Metals | Diamyd Medical vs. Transport International Holdings | Diamyd Medical vs. Warner Music Group |
| Soken Chemical vs. IMAGIN MEDICAL INC | Soken Chemical vs. Diamyd Medical AB | Soken Chemical vs. Aluminum of | Soken Chemical vs. ARDAGH METAL PACDL 0001 |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |