Correlation Between Diamyd Medical and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and Samsung SDI 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 SDI 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 SDI Co, you can compare the effects of market volatilities on Diamyd Medical and Samsung SDI 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 SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and Samsung SDI.
Diversification Opportunities for Diamyd Medical and Samsung SDI
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Diamyd and Samsung is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and Samsung SDI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI 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 SDI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung SDI has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and Samsung SDI go up and down completely randomly.
Pair Corralation between Diamyd Medical and Samsung SDI
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 1.78 times more return on investment than Samsung SDI. However, Diamyd Medical is 1.78 times more volatile than Samsung SDI Co. It trades about 0.23 of its potential returns per unit of risk. Samsung SDI Co is currently generating about -0.06 per unit of risk. If you would invest 103.00 in Diamyd Medical AB on September 15, 2024 and sell it today you would earn a total of 28.00 from holding Diamyd Medical AB or generate 27.18% 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 SDI Co
Performance |
| Timeline |
| Diamyd Medical AB |
| Samsung SDI |
Diamyd Medical and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and Samsung SDI
The main advantage of trading using opposite Diamyd Medical and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, Samsung SDI 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 SDI will offset losses from the drop in Samsung SDI's long position.| Diamyd Medical vs. Moderna | Diamyd Medical vs. BioNTech SE | Diamyd Medical vs. Superior Plus Corp | Diamyd Medical vs. SIVERS SEMICONDUCTORS AB |
| Samsung SDI vs. Vulcan Materials | Samsung SDI vs. Hyster Yale Materials Handling | Samsung SDI vs. Martin Marietta Materials | Samsung SDI vs. Diamyd Medical AB |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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