Correlation Between Hansa Biopharma and Diamyd Medical
Can any of the company-specific risk be diversified away by investing in both Hansa Biopharma and Diamyd Medical 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 Hansa Biopharma and Diamyd Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansa Biopharma AB and Diamyd Medical AB, you can compare the effects of market volatilities on Hansa Biopharma 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 Hansa Biopharma with a short position of Diamyd Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Biopharma and Diamyd Medical.
Diversification Opportunities for Hansa Biopharma and Diamyd Medical
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hansa and Diamyd is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Biopharma AB 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 Hansa Biopharma 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 Hansa Biopharma AB 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 Hansa Biopharma i.e., Hansa Biopharma and Diamyd Medical go up and down completely randomly.
Pair Corralation between Hansa Biopharma and Diamyd Medical
Assuming the 90 days trading horizon Hansa Biopharma is expected to generate 203.0 times less return on investment than Diamyd Medical. But when comparing it to its historical volatility, Hansa Biopharma AB is 1.12 times less risky than Diamyd Medical. It trades about 0.0 of its potential returns per unit of risk. Diamyd Medical AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,590 in Diamyd Medical AB on November 2, 2024 and sell it today you would earn a total of 128.00 from holding Diamyd Medical AB or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansa Biopharma AB vs. Diamyd Medical AB
Performance |
| Timeline |
| Hansa Biopharma AB |
| Diamyd Medical AB |
Hansa Biopharma and Diamyd Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Biopharma and Diamyd Medical
The main advantage of trading using opposite Hansa Biopharma and Diamyd Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Biopharma 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.| Hansa Biopharma vs. Oncopeptides AB | Hansa Biopharma vs. ExpreS2ion Biotech Holding | Hansa Biopharma vs. BioInvent International AB | Hansa Biopharma vs. Zealand Pharma AS |
| Diamyd Medical vs. Cantargia AB | Diamyd Medical vs. Hansa Biopharma AB | Diamyd Medical vs. Saniona AB | Diamyd Medical vs. Mendus 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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