Correlation Between Grifols SA and Amper SA
Can any of the company-specific risk be diversified away by investing in both Grifols SA and Amper 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 Grifols SA and Amper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grifols SA and Amper SA, you can compare the effects of market volatilities on Grifols SA and Amper 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 Grifols SA with a short position of Amper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grifols SA and Amper SA.
Diversification Opportunities for Grifols SA and Amper SA
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grifols and Amper is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Grifols SA and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA 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 Amper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amper SA has no effect on the direction of Grifols SA i.e., Grifols SA and Amper SA go up and down completely randomly.
Pair Corralation between Grifols SA and Amper SA
Assuming the 90 days trading horizon Grifols SA is expected to under-perform the Amper SA. But the stock apears to be less risky and, when comparing its historical volatility, Grifols SA is 1.33 times less risky than Amper SA. The stock trades about -0.07 of its potential returns per unit of risk. The Amper SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Amper SA on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Amper SA or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grifols SA vs. Amper SA
Performance |
| Timeline |
| Grifols SA |
| Amper SA |
Grifols SA and Amper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grifols SA and Amper SA
The main advantage of trading using opposite Grifols SA and Amper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grifols SA position performs unexpectedly, Amper 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 Amper SA will offset losses from the drop in Amper SA's long position.| Grifols SA vs. ACS Actividades de | Grifols SA vs. Acerinox | Grifols SA vs. Ferrovial | Grifols SA vs. International Consolidated Airlines |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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