Correlation Between DAX Index and Diamyd Medical
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By analyzing existing cross correlation between DAX Index and Diamyd Medical AB, you can compare the effects of market volatilities on DAX Index and Diamyd Medical 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 DAX Index with a short position of Diamyd Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Diamyd Medical.
Diversification Opportunities for DAX Index and Diamyd Medical
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and Diamyd is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Diamyd Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamyd Medical AB and DAX Index 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 DAX Index are associated (or correlated) with Diamyd Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamyd Medical AB has no effect on the direction of DAX Index i.e., DAX Index and Diamyd Medical go up and down completely randomly.
Pair Corralation between DAX Index and Diamyd Medical
Assuming the 90 days trading horizon DAX Index is expected to generate 0.15 times more return on investment than Diamyd Medical. However, DAX Index is 6.51 times less risky than Diamyd Medical. It trades about 0.08 of its potential returns per unit of risk. Diamyd Medical AB is currently generating about 0.01 per unit of risk. If you would invest 1,444,761 in DAX Index on August 25, 2024 and sell it today you would earn a total of 487,498 from holding DAX Index or generate 33.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
DAX Index vs. Diamyd Medical AB
Performance |
| Timeline |
DAX Index and Diamyd Medical Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Diamyd Medical AB
Pair trading matchups for Diamyd Medical
Pair Trading with DAX Index and Diamyd Medical
The main advantage of trading using opposite DAX Index and Diamyd Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Diamyd Medical 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 Diamyd Medical will offset losses from the drop in Diamyd Medical's long position.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
| Diamyd Medical vs. ASPEN TECHINC DL | Diamyd Medical vs. REGAL ASIAN INVESTMENTS | Diamyd Medical vs. Sunny Optical Technology | Diamyd Medical vs. CapitaLand Investment Limited |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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