Correlation Between Grimoldi and Autopistas Del

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Can any of the company-specific risk be diversified away by investing in both Grimoldi and Autopistas Del 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 Grimoldi and Autopistas Del into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grimoldi SA and Autopistas del Sol, you can compare the effects of market volatilities on Grimoldi and Autopistas Del 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 Grimoldi with a short position of Autopistas Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grimoldi and Autopistas Del.

Diversification Opportunities for Grimoldi and Autopistas Del

GrimoldiAutopistasDiversified AwayGrimoldiAutopistasDiversified Away100%
0.68
  Correlation Coefficient

Poor diversification

The 3 months correlation between Grimoldi and Autopistas is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Grimoldi SA and Autopistas del Sol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopistas del Sol and Grimoldi 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 Grimoldi SA are associated (or correlated) with Autopistas Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopistas del Sol has no effect on the direction of Grimoldi i.e., Grimoldi and Autopistas Del go up and down completely randomly.

Pair Corralation between Grimoldi and Autopistas Del

Assuming the 90 days trading horizon Grimoldi is expected to generate 1.32 times less return on investment than Autopistas Del. But when comparing it to its historical volatility, Grimoldi SA is 1.18 times less risky than Autopistas Del. It trades about 0.12 of its potential returns per unit of risk. Autopistas del Sol is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  40,800  in Autopistas del Sol on November 29, 2024 and sell it today you would earn a total of  275,200  from holding Autopistas del Sol or generate 674.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy99.79%
ValuesDaily Returns

Grimoldi SA  vs.  Autopistas del Sol

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 510152025
JavaScript chart by amCharts 3.21.15GRIM AUSO
       Timeline  
Grimoldi SA 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Grimoldi SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Grimoldi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1,2001,2501,3001,3501,4001,450
Autopistas del Sol 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Autopistas del Sol has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15JanFebFeb3,2003,4003,6003,8004,000

Grimoldi and Autopistas Del Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.05-6.03-4.01-1.99-0.03372.034.136.228.3210.42 0.020.030.040.050.06
JavaScript chart by amCharts 3.21.15GRIM AUSO
       Returns  

Pair Trading with Grimoldi and Autopistas Del

The main advantage of trading using opposite Grimoldi and Autopistas Del positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grimoldi position performs unexpectedly, Autopistas Del 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 Autopistas Del will offset losses from the drop in Autopistas Del's long position.
The idea behind Grimoldi SA and Autopistas del Sol pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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