Correlation Between Diamyd Medical and Rolling Optics
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and Rolling Optics 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 Rolling Optics 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 Rolling Optics Holding, you can compare the effects of market volatilities on Diamyd Medical and Rolling Optics 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 Rolling Optics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and Rolling Optics.
Diversification Opportunities for Diamyd Medical and Rolling Optics
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Diamyd and Rolling is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and Rolling Optics Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rolling Optics Holding 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 Rolling Optics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rolling Optics Holding has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and Rolling Optics go up and down completely randomly.
Pair Corralation between Diamyd Medical and Rolling Optics
Assuming the 90 days trading horizon Diamyd Medical AB is expected to generate 0.72 times more return on investment than Rolling Optics. However, Diamyd Medical AB is 1.4 times less risky than Rolling Optics. It trades about 0.24 of its potential returns per unit of risk. Rolling Optics Holding is currently generating about 0.08 per unit of risk. If you would invest 1,596 in Diamyd Medical AB on October 21, 2024 and sell it today you would earn a total of 220.00 from holding Diamyd Medical AB or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamyd Medical AB vs. Rolling Optics Holding
Performance |
| Timeline |
| Diamyd Medical AB |
| Rolling Optics Holding |
Diamyd Medical and Rolling Optics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamyd Medical and Rolling Optics
The main advantage of trading using opposite Diamyd Medical and Rolling Optics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, Rolling Optics 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 Rolling Optics will offset losses from the drop in Rolling Optics' long position.| Diamyd Medical vs. Cantargia AB | Diamyd Medical vs. Hansa Biopharma AB | Diamyd Medical vs. Saniona AB | Diamyd Medical vs. Mendus AB |
| Rolling Optics vs. Integrum AB Series | Rolling Optics vs. Lipigon Pharmaceuticals AB | Rolling Optics vs. Concejo AB | Rolling Optics vs. Diadrom Holding 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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