Correlation Between Grifols SA and Exicure
Can any of the company-specific risk be diversified away by investing in both Grifols SA and Exicure 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 Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grifols SA ADR and Exicure, you can compare the effects of market volatilities on Grifols SA and Exicure 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 Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grifols SA and Exicure.
Diversification Opportunities for Grifols SA and Exicure
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grifols and Exicure is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Grifols SA ADR and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure 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 ADR are associated (or correlated) with Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Grifols SA i.e., Grifols SA and Exicure go up and down completely randomly.
Pair Corralation between Grifols SA and Exicure
Given the investment horizon of 90 days Grifols SA is expected to generate 97.35 times less return on investment than Exicure. But when comparing it to its historical volatility, Grifols SA ADR is 3.72 times less risky than Exicure. It trades about 0.0 of its potential returns per unit of risk. Exicure is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 339.00 in Exicure on November 3, 2024 and sell it today you would earn a total of 742.00 from holding Exicure or generate 218.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Grifols SA ADR vs. Exicure
Performance |
| Timeline |
| Grifols SA ADR |
| Exicure |
Grifols SA and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grifols SA and Exicure
The main advantage of trading using opposite Grifols SA and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grifols SA position performs unexpectedly, Exicure 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 Exicure will offset losses from the drop in Exicure's long position.| Grifols SA vs. Novartis AG ADR | Grifols SA vs. AstraZeneca PLC ADR | Grifols SA vs. GlaxoSmithKline PLC ADR | Grifols SA vs. Roche Holding Ltd |
| Exicure vs. Ikena Oncology | Exicure vs. HCW Biologics | Exicure vs. RenovoRx | Exicure vs. Tempest Therapeutics |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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