Correlation Between Diamyd Medical and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics Co, you can compare the effects of market volatilities on Diamyd Medical and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and Samsung Electronics.
Diversification Opportunities for Diamyd Medical and Samsung Electronics
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Diamyd and Samsung is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and Samsung Electronics go up and down completely randomly.
Pair Corralation between Diamyd Medical and Samsung Electronics
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 1.86 times more return on investment than Samsung Electronics. However, Diamyd Medical is 1.86 times more volatile than Samsung Electronics Co. It trades about 0.21 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.09 per unit of risk. If you would invest 108.00 in Diamyd Medical AB on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Diamyd Medical AB or generate 24.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. Samsung Electronics Co
Performance |
| Timeline |
| Diamyd Medical AB |
| Samsung Electronics |
Diamyd Medical and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and Samsung Electronics
The main advantage of trading using opposite Diamyd Medical and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Diamyd Medical vs. Moderna | Diamyd Medical vs. BioNTech SE | Diamyd Medical vs. Superior Plus Corp | Diamyd Medical vs. SIVERS SEMICONDUCTORS AB |
| Samsung Electronics vs. ONWARD MEDICAL BV | Samsung Electronics vs. CompuGroup Medical SE | Samsung Electronics vs. Fast Retailing Co | Samsung Electronics vs. CSSC Offshore Marine |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |