Correlation Between SCANDMEDICAL SOLDK-040 and Diamyd Medical
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 and Diamyd Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Diamyd Medical AB, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 with a short position of Diamyd Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and Diamyd Medical.
Diversification Opportunities for SCANDMEDICAL SOLDK-040 and Diamyd Medical
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCANDMEDICAL and Diamyd is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and Diamyd Medical go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK-040 and Diamyd Medical
Assuming the 90 days horizon SCANDMEDICAL SOLDK-040 is expected to generate 40.79 times less return on investment than Diamyd Medical. But when comparing it to its historical volatility, SCANDMEDICAL SOLDK 040 is 1.84 times less risky than Diamyd Medical. It trades about 0.01 of its potential returns per unit of risk. Diamyd Medical AB is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 135.00 in Diamyd Medical AB on October 24, 2024 and sell it today you would earn a total of 17.00 from holding Diamyd Medical AB or generate 12.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. Diamyd Medical AB
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| Diamyd Medical AB |
SCANDMEDICAL SOLDK-040 and Diamyd Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK-040 and Diamyd Medical
The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and Diamyd Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 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.| SCANDMEDICAL SOLDK-040 vs. Abbott Laboratories | SCANDMEDICAL SOLDK-040 vs. Abbott Laboratories | SCANDMEDICAL SOLDK-040 vs. Medtronic PLC | SCANDMEDICAL SOLDK-040 vs. Stryker |
| Diamyd Medical vs. NEWELL RUBBERMAID | Diamyd Medical vs. Compagnie Plastic Omnium | Diamyd Medical vs. THRACE PLASTICS | Diamyd Medical vs. Zoom Video Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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