Correlation Between VIVA WINE and Diamyd Medical
Can any of the company-specific risk be diversified away by investing in both VIVA WINE 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 VIVA WINE and Diamyd Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIVA WINE GROUP and Diamyd Medical AB, you can compare the effects of market volatilities on VIVA WINE 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 VIVA WINE with a short position of Diamyd Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIVA WINE and Diamyd Medical.
Diversification Opportunities for VIVA WINE and Diamyd Medical
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VIVA and Diamyd is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding VIVA WINE GROUP 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 VIVA WINE 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 VIVA WINE GROUP 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 VIVA WINE i.e., VIVA WINE and Diamyd Medical go up and down completely randomly.
Pair Corralation between VIVA WINE and Diamyd Medical
Assuming the 90 days horizon VIVA WINE GROUP is expected to under-perform the Diamyd Medical. But the stock apears to be less risky and, when comparing its historical volatility, VIVA WINE GROUP is 2.92 times less risky than Diamyd Medical. The stock trades about -0.11 of its potential returns per unit of risk. The Diamyd Medical AB is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 95.00 in Diamyd Medical AB on October 25, 2024 and sell it today you would earn a total of 57.00 from holding Diamyd Medical AB or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIVA WINE GROUP vs. Diamyd Medical AB
Performance |
| Timeline |
| VIVA WINE GROUP |
| Diamyd Medical AB |
VIVA WINE and Diamyd Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIVA WINE and Diamyd Medical
The main advantage of trading using opposite VIVA WINE and Diamyd Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIVA WINE 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.| VIVA WINE vs. GALENA MINING LTD | VIVA WINE vs. TreeHouse Foods | VIVA WINE vs. High Liner Foods | VIVA WINE vs. DISTRICT METALS |
| Diamyd Medical vs. Easy Software AG | Diamyd Medical vs. Check Point Software | Diamyd Medical vs. FIRST SHIP LEASE | Diamyd Medical vs. United Rentals |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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