Correlation Between Gestamp Automocion and Fluidra
Can any of the company-specific risk be diversified away by investing in both Gestamp Automocion and Fluidra 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 Gestamp Automocion and Fluidra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gestamp Automocion SA and Fluidra, you can compare the effects of market volatilities on Gestamp Automocion and Fluidra 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 Gestamp Automocion with a short position of Fluidra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gestamp Automocion and Fluidra.
Diversification Opportunities for Gestamp Automocion and Fluidra
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gestamp and Fluidra is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gestamp Automocion SA and Fluidra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluidra and Gestamp Automocion 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 Gestamp Automocion SA are associated (or correlated) with Fluidra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluidra has no effect on the direction of Gestamp Automocion i.e., Gestamp Automocion and Fluidra go up and down completely randomly.
Pair Corralation between Gestamp Automocion and Fluidra
Assuming the 90 days trading horizon Gestamp Automocion SA is expected to under-perform the Fluidra. In addition to that, Gestamp Automocion is 1.05 times more volatile than Fluidra. It trades about -0.09 of its total potential returns per unit of risk. Fluidra is currently generating about 0.08 per unit of volatility. If you would invest 2,360 in Fluidra on August 28, 2024 and sell it today you would earn a total of 146.00 from holding Fluidra or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gestamp Automocion SA vs. Fluidra
Performance |
| Timeline |
| Gestamp Automocion |
| Fluidra |
Gestamp Automocion and Fluidra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gestamp Automocion and Fluidra
The main advantage of trading using opposite Gestamp Automocion and Fluidra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gestamp Automocion position performs unexpectedly, Fluidra 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 Fluidra will offset losses from the drop in Fluidra's long position.| Gestamp Automocion vs. International Consolidated Airlines | Gestamp Automocion vs. Merlin Properties SOCIMI | Gestamp Automocion vs. Aena SA | Gestamp Automocion vs. Acerinox |
| Fluidra vs. Laboratorios Farmaceuticos ROVI | Fluidra vs. Solaria Energa y | Fluidra vs. Grifols SA | Fluidra vs. CIE Automotive SA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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