Correlation Analysis Between DiaMedica Therapeutics and Galapagos

This module allows you to analyze existing cross correlation between DiaMedica Therapeutics and Galapagos NV. You can compare the effects of market volatilities on DiaMedica Therapeutics and Galapagos 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 DiaMedica Therapeutics with a short position of Galapagos. See also your portfolio center. Please also check ongoing floating volatility patterns of DiaMedica Therapeutics and Galapagos.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

DiaMedica Therapeutics  
00

Risk-Adjusted Performance

Over the last 30 days DiaMedica Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Galapagos NV  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Galapagos NV are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, Galapagos exhibited solid returns over the last few months and may actually be approaching a breakup point.

DiaMedica Therapeutics and Galapagos Volatility Contrast

 Predicted Return Density 
      Returns 

DiaMedica Therapeutics Inc  vs.  Galapagos NV

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DiaMedica Therapeutics is expected to under-perform the Galapagos. In addition to that, DiaMedica Therapeutics is 2.96 times more volatile than Galapagos NV. It trades about -0.02 of its total potential returns per unit of risk. Galapagos NV is currently generating about 0.15 per unit of volatility. If you would invest  12,610  in Galapagos NV on August 18, 2019 and sell it today you would earn a total of  3,230  from holding Galapagos NV or generate 25.61% return on investment over 30 days.

Pair Corralation between DiaMedica Therapeutics and Galapagos

0.39
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for DiaMedica Therapeutics and Galapagos

DiaMedica Therapeutics Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DiaMedica Therapeutics Inc and Galapagos NV in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Galapagos NV and DiaMedica Therapeutics 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 DiaMedica Therapeutics are associated (or correlated) with Galapagos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galapagos NV has no effect on the direction of DiaMedica Therapeutics i.e. DiaMedica Therapeutics and Galapagos go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Arbitrage module to find pairs of digital assets on multiple exchanges that are traded at a risk free arbitrage.


 
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