Correlation Between XTANT MEDICAL and Diamyd Medical
Can any of the company-specific risk be diversified away by investing in both XTANT MEDICAL 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 XTANT MEDICAL and Diamyd Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTANT MEDICAL HLDGS and Diamyd Medical AB, you can compare the effects of market volatilities on XTANT MEDICAL 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 XTANT MEDICAL with a short position of Diamyd Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTANT MEDICAL and Diamyd Medical.
Diversification Opportunities for XTANT MEDICAL and Diamyd Medical
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between XTANT and Diamyd is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS 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 XTANT MEDICAL 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 XTANT MEDICAL HLDGS 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 XTANT MEDICAL i.e., XTANT MEDICAL and Diamyd Medical go up and down completely randomly.
Pair Corralation between XTANT MEDICAL and Diamyd Medical
Assuming the 90 days horizon XTANT MEDICAL HLDGS is expected to under-perform the Diamyd Medical. But the stock apears to be less risky and, when comparing its historical volatility, XTANT MEDICAL HLDGS is 2.55 times less risky than Diamyd Medical. The stock trades about -0.13 of its potential returns per unit of risk. The Diamyd Medical AB is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 95.00 in Diamyd Medical AB on September 25, 2024 and sell it today you would earn a total of 41.00 from holding Diamyd Medical AB or generate 43.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTANT MEDICAL HLDGS vs. Diamyd Medical AB
Performance |
| Timeline |
| XTANT MEDICAL HLDGS |
| Diamyd Medical AB |
XTANT MEDICAL and Diamyd Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTANT MEDICAL and Diamyd Medical
The main advantage of trading using opposite XTANT MEDICAL and Diamyd Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL 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.| XTANT MEDICAL vs. Abbott Laboratories | XTANT MEDICAL vs. Medtronic PLC | XTANT MEDICAL vs. Stryker | XTANT MEDICAL vs. Boston Scientific |
| Diamyd Medical vs. INDO RAMA SYNTHETIC | Diamyd Medical vs. Quaker Chemical | Diamyd Medical vs. PTT Global Chemical | Diamyd Medical vs. XTANT MEDICAL HLDGS |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |