Correlation Between Diamyd Medical and Kancera AB
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and Kancera AB 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 Kancera AB 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 Kancera AB, you can compare the effects of market volatilities on Diamyd Medical and Kancera AB 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 Kancera AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and Kancera AB.
Diversification Opportunities for Diamyd Medical and Kancera AB
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Diamyd and Kancera is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and Kancera AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kancera 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 Kancera AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kancera AB has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and Kancera AB go up and down completely randomly.
Pair Corralation between Diamyd Medical and Kancera AB
Assuming the 90 days trading horizon Diamyd Medical AB is expected to generate 0.74 times more return on investment than Kancera AB. However, Diamyd Medical AB is 1.36 times less risky than Kancera AB. It trades about 0.06 of its potential returns per unit of risk. Kancera AB is currently generating about -0.05 per unit of risk. If you would invest 856.00 in Diamyd Medical AB on August 28, 2024 and sell it today you would earn a total of 436.00 from holding Diamyd Medical AB or generate 50.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. Kancera AB
Performance |
| Timeline |
| Diamyd Medical AB |
| Kancera AB |
Diamyd Medical and Kancera AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and Kancera AB
The main advantage of trading using opposite Diamyd Medical and Kancera AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, Kancera AB 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 Kancera AB will offset losses from the drop in Kancera AB's long position.| Diamyd Medical vs. Bavarian Nordic | Diamyd Medical vs. BioPorto | Diamyd Medical vs. Zaptec AS | Diamyd Medical vs. cBrain AS |
| Kancera AB vs. Bavarian Nordic | Kancera AB vs. BioPorto | Kancera AB vs. Zaptec AS | Kancera AB vs. cBrain AS |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |