Correlation Between Diamyd Medical and SAFETY MEDICAL
Can any of the company-specific risk be diversified away by investing in both Diamyd Medical and SAFETY 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 Diamyd Medical and SAFETY MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamyd Medical AB and SAFETY MEDICAL PROD, you can compare the effects of market volatilities on Diamyd Medical and SAFETY 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 Diamyd Medical with a short position of SAFETY MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamyd Medical and SAFETY MEDICAL.
Diversification Opportunities for Diamyd Medical and SAFETY MEDICAL
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Diamyd and SAFETY is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Diamyd Medical AB and SAFETY MEDICAL PROD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAFETY MEDICAL PROD and Diamyd 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 Diamyd Medical AB are associated (or correlated) with SAFETY MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAFETY MEDICAL PROD has no effect on the direction of Diamyd Medical i.e., Diamyd Medical and SAFETY MEDICAL go up and down completely randomly.
Pair Corralation between Diamyd Medical and SAFETY MEDICAL
Assuming the 90 days horizon Diamyd Medical AB is expected to generate 2.63 times more return on investment than SAFETY MEDICAL. However, Diamyd Medical is 2.63 times more volatile than SAFETY MEDICAL PROD. It trades about 0.36 of its potential returns per unit of risk. SAFETY MEDICAL PROD is currently generating about -0.46 per unit of risk. 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 Against |
Strength | Insignificant |
Accuracy | 76.19% |
Values | Daily Returns |
Diamyd Medical AB vs. SAFETY MEDICAL PROD
Performance |
Timeline |
Diamyd Medical AB |
SAFETY MEDICAL PROD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Diamyd Medical and SAFETY MEDICAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Diamyd Medical and SAFETY MEDICAL
The main advantage of trading using opposite Diamyd Medical and SAFETY MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamyd Medical position performs unexpectedly, SAFETY 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 SAFETY MEDICAL will offset losses from the drop in SAFETY MEDICAL's long position.Diamyd Medical vs. INDO RAMA SYNTHETIC | Diamyd Medical vs. Quaker Chemical | Diamyd Medical vs. PTT Global Chemical | Diamyd Medical vs. XTANT MEDICAL HLDGS |
SAFETY MEDICAL vs. UNIQA INSURANCE GR | SAFETY MEDICAL vs. Ping An Insurance | SAFETY MEDICAL vs. REVO INSURANCE SPA | SAFETY MEDICAL vs. SBI Insurance Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Stocks Directory Find actively traded stocks across global markets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |