Correlation Between Grifols SA and Atresmedia Corporacin
Can any of the company-specific risk be diversified away by investing in both Grifols SA and Atresmedia Corporacin 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 Grifols SA and Atresmedia Corporacin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grifols SA and Atresmedia Corporacin de, you can compare the effects of market volatilities on Grifols SA and Atresmedia Corporacin 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 Grifols SA with a short position of Atresmedia Corporacin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grifols SA and Atresmedia Corporacin.
Diversification Opportunities for Grifols SA and Atresmedia Corporacin
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grifols and Atresmedia is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Grifols SA and Atresmedia Corporacin de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia Corporacin and Grifols SA 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 Grifols SA are associated (or correlated) with Atresmedia Corporacin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia Corporacin has no effect on the direction of Grifols SA i.e., Grifols SA and Atresmedia Corporacin go up and down completely randomly.
Pair Corralation between Grifols SA and Atresmedia Corporacin
Assuming the 90 days trading horizon Grifols SA is expected to under-perform the Atresmedia Corporacin. In addition to that, Grifols SA is 4.83 times more volatile than Atresmedia Corporacin de. It trades about -0.21 of its total potential returns per unit of risk. Atresmedia Corporacin de is currently generating about 0.3 per unit of volatility. If you would invest 444.00 in Atresmedia Corporacin de on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Atresmedia Corporacin de or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grifols SA vs. Atresmedia Corporacin de
Performance |
| Timeline |
| Grifols SA |
| Atresmedia Corporacin |
Grifols SA and Atresmedia Corporacin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grifols SA and Atresmedia Corporacin
The main advantage of trading using opposite Grifols SA and Atresmedia Corporacin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grifols SA position performs unexpectedly, Atresmedia Corporacin 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 Atresmedia Corporacin will offset losses from the drop in Atresmedia Corporacin's long position.| Grifols SA vs. ACS Actividades de | Grifols SA vs. Acerinox | Grifols SA vs. Ferrovial | Grifols SA vs. International Consolidated Airlines |
| Atresmedia Corporacin vs. Grifols SA | Atresmedia Corporacin vs. Aena SA | Atresmedia Corporacin vs. ACS Actividades de | Atresmedia Corporacin vs. Ferrovial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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