Correlation Between Akoustis Technologies and Grifols SA
Can any of the company-specific risk be diversified away by investing in both Akoustis Technologies and Grifols SA 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 Akoustis Technologies and Grifols SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akoustis Technologies and Grifols SA ADR, you can compare the effects of market volatilities on Akoustis Technologies and Grifols SA 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 Akoustis Technologies with a short position of Grifols SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akoustis Technologies and Grifols SA.
Diversification Opportunities for Akoustis Technologies and Grifols SA
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akoustis and Grifols is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Akoustis Technologies and Grifols SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grifols SA ADR and Akoustis Technologies 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 Akoustis Technologies are associated (or correlated) with Grifols SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grifols SA ADR has no effect on the direction of Akoustis Technologies i.e., Akoustis Technologies and Grifols SA go up and down completely randomly.
Pair Corralation between Akoustis Technologies and Grifols SA
Given the investment horizon of 90 days Akoustis Technologies is expected to under-perform the Grifols SA. In addition to that, Akoustis Technologies is 2.21 times more volatile than Grifols SA ADR. It trades about -0.02 of its total potential returns per unit of risk. Grifols SA ADR is currently generating about 0.01 per unit of volatility. If you would invest 735.00 in Grifols SA ADR on September 1, 2024 and sell it today you would lose (36.00) from holding Grifols SA ADR or give up 4.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akoustis Technologies vs. Grifols SA ADR
Performance |
| Timeline |
| Akoustis Technologies |
| Grifols SA ADR |
Akoustis Technologies and Grifols SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akoustis Technologies and Grifols SA
The main advantage of trading using opposite Akoustis Technologies and Grifols SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akoustis Technologies position performs unexpectedly, Grifols SA 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 Grifols SA will offset losses from the drop in Grifols SA's long position.| Akoustis Technologies vs. Aviat Networks | Akoustis Technologies vs. AudioCodes | Akoustis Technologies vs. Silicom | Akoustis Technologies vs. Gilat Satellite Networks |
| Grifols SA vs. Novartis AG ADR | Grifols SA vs. AstraZeneca PLC ADR | Grifols SA vs. GlaxoSmithKline PLC ADR | Grifols SA vs. Roche Holding Ltd |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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