Correlation Between HELIOS TECHS and Diamyd Medical
Can any of the company-specific risk be diversified away by investing in both HELIOS TECHS 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 HELIOS TECHS and Diamyd Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HELIOS TECHS INC and Diamyd Medical AB, you can compare the effects of market volatilities on HELIOS TECHS 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 HELIOS TECHS with a short position of Diamyd Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of HELIOS TECHS and Diamyd Medical.
Diversification Opportunities for HELIOS TECHS and Diamyd Medical
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HELIOS and Diamyd is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding HELIOS TECHS INC 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 HELIOS TECHS 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 HELIOS TECHS INC 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 HELIOS TECHS i.e., HELIOS TECHS and Diamyd Medical go up and down completely randomly.
Pair Corralation between HELIOS TECHS and Diamyd Medical
Assuming the 90 days horizon HELIOS TECHS INC is expected to under-perform the Diamyd Medical. But the stock apears to be less risky and, when comparing its historical volatility, HELIOS TECHS INC is 2.06 times less risky than Diamyd Medical. The stock trades about -0.02 of its potential returns per unit of risk. The Diamyd Medical AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Diamyd Medical AB on October 28, 2024 and sell it today you would earn a total of 15.00 from holding Diamyd Medical AB or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HELIOS TECHS INC vs. Diamyd Medical AB
Performance |
| Timeline |
| HELIOS TECHS INC |
| Diamyd Medical AB |
HELIOS TECHS and Diamyd Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HELIOS TECHS and Diamyd Medical
The main advantage of trading using opposite HELIOS TECHS and Diamyd Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HELIOS TECHS 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.| HELIOS TECHS vs. Siemens Aktiengesellschaft | HELIOS TECHS vs. Siemens Aktiengesellschaft | HELIOS TECHS vs. Schneider Electric SE | HELIOS TECHS vs. Atlas Copco A |
| Diamyd Medical vs. JLF INVESTMENT | Diamyd Medical vs. High Liner Foods | Diamyd Medical vs. United Natural Foods | Diamyd Medical vs. Japan Asia Investment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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