Correlation Between Diamyd Medical and Teck Resources
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and Teck Resources 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 Teck Resources 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 Teck Resources Ltd, you can compare the effects of market volatilities on Diamyd Medical and Teck Resources 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 Teck Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and Teck Resources.
Diversification Opportunities for Diamyd Medical and Teck Resources
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Diamyd and Teck is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and Teck Resources Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teck Resources 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 Teck Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teck Resources has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and Teck Resources go up and down completely randomly.
Pair Corralation between Diamyd Medical and Teck Resources
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 2.17 times more return on investment than Teck Resources. However, Diamyd Medical is 2.17 times more volatile than Teck Resources Ltd. It trades about 0.05 of its potential returns per unit of risk. Teck Resources Ltd is currently generating about 0.03 per unit of risk. If you would invest 81.00 in Diamyd Medical AB on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Diamyd Medical AB or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Diamyd Medical AB vs. Teck Resources Ltd
Performance |
| Timeline |
| Diamyd Medical AB |
| Teck Resources |
Diamyd Medical and Teck Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and Teck Resources
The main advantage of trading using opposite Diamyd Medical and Teck Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, Teck Resources 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 Teck Resources will offset losses from the drop in Teck Resources' long position.| Diamyd Medical vs. Moderna | Diamyd Medical vs. BioNTech SE | Diamyd Medical vs. Superior Plus Corp | Diamyd Medical vs. SIVERS SEMICONDUCTORS AB |
| Teck Resources vs. Kaiser Aluminum | Teck Resources vs. SCANDMEDICAL SOLDK 040 | Teck Resources vs. CVR Medical Corp | Teck Resources vs. MeVis Medical Solutions |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |