Correlation Between Diamyd Medical and Immunovia Publ
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and Immunovia Publ 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 Immunovia Publ 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 Immunovia publ AB, you can compare the effects of market volatilities on Diamyd Medical and Immunovia Publ 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 Immunovia Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and Immunovia Publ.
Diversification Opportunities for Diamyd Medical and Immunovia Publ
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Diamyd and Immunovia is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and Immunovia publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunovia publ AB 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 Immunovia Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunovia publ AB has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and Immunovia Publ go up and down completely randomly.
Pair Corralation between Diamyd Medical and Immunovia Publ
Assuming the 90 days trading horizon Diamyd Medical is expected to generate 6.74 times less return on investment than Immunovia Publ. But when comparing it to its historical volatility, Diamyd Medical AB is 2.19 times less risky than Immunovia Publ. It trades about 0.07 of its potential returns per unit of risk. Immunovia publ AB is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 63.00 in Immunovia publ AB on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Immunovia publ AB or generate 34.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. Immunovia publ AB
Performance |
| Timeline |
| Diamyd Medical AB |
| Immunovia publ AB |
Diamyd Medical and Immunovia Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and Immunovia Publ
The main advantage of trading using opposite Diamyd Medical and Immunovia Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, Immunovia Publ 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 Immunovia Publ will offset losses from the drop in Immunovia Publ's long position.| Diamyd Medical vs. Cantargia AB | Diamyd Medical vs. Hansa Biopharma AB | Diamyd Medical vs. Saniona AB | Diamyd Medical vs. Mendus AB |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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