Correlation Between Diamyd Medical and ZINC MEDIA
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and ZINC 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 ZINC 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 ZINC MEDIA GR, you can compare the effects of market volatilities on Diamyd Medical and ZINC 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 ZINC MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and ZINC MEDIA.
Diversification Opportunities for Diamyd Medical and ZINC MEDIA
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Diamyd and ZINC is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and ZINC MEDIA GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZINC MEDIA GR 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 ZINC MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZINC MEDIA GR has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and ZINC MEDIA go up and down completely randomly.
Pair Corralation between Diamyd Medical and ZINC MEDIA
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 1.21 times more return on investment than ZINC MEDIA. However, Diamyd Medical is 1.21 times more volatile than ZINC MEDIA GR. It trades about 0.32 of its potential returns per unit of risk. ZINC MEDIA GR is currently generating about 0.24 per unit of risk. If you would invest 134.00 in Diamyd Medical AB on October 11, 2024 and sell it today you would earn a total of 28.00 from holding Diamyd Medical AB or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. ZINC MEDIA GR
Performance |
| Timeline |
| Diamyd Medical AB |
| ZINC MEDIA GR |
Diamyd Medical and ZINC MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and ZINC MEDIA
The main advantage of trading using opposite Diamyd Medical and ZINC MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, ZINC 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 ZINC MEDIA will offset losses from the drop in ZINC MEDIA's long position.| Diamyd Medical vs. Siemens Healthineers AG | Diamyd Medical vs. Garofalo Health Care | Diamyd Medical vs. Perdoceo Education | Diamyd Medical vs. American Public Education |
| ZINC MEDIA vs. CARSALESCOM | ZINC MEDIA vs. Diamyd Medical AB | ZINC MEDIA vs. FAST RETAIL ADR | ZINC MEDIA vs. CompuGroup Medical SE |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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