Correlation Between Grifols SA and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both Grifols SA and DICKER DATA 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 DICKER DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grifols SA and DICKER DATA LTD, you can compare the effects of market volatilities on Grifols SA and DICKER DATA 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 DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grifols SA and DICKER DATA.
Diversification Opportunities for Grifols SA and DICKER DATA
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grifols and DICKER is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Grifols SA and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD 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 DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of Grifols SA i.e., Grifols SA and DICKER DATA go up and down completely randomly.
Pair Corralation between Grifols SA and DICKER DATA
Assuming the 90 days trading horizon Grifols SA is expected to under-perform the DICKER DATA. In addition to that, Grifols SA is 1.63 times more volatile than DICKER DATA LTD. It trades about -0.22 of its total potential returns per unit of risk. DICKER DATA LTD is currently generating about -0.11 per unit of volatility. If you would invest 529.00 in DICKER DATA LTD on September 12, 2024 and sell it today you would lose (33.00) from holding DICKER DATA LTD or give up 6.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grifols SA vs. DICKER DATA LTD
Performance |
| Timeline |
| Grifols SA |
| DICKER DATA LTD |
Grifols SA and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grifols SA and DICKER DATA
The main advantage of trading using opposite Grifols SA and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grifols SA position performs unexpectedly, DICKER DATA 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 DICKER DATA will offset losses from the drop in DICKER DATA's long position.| Grifols SA vs. INTERSHOP Communications Aktiengesellschaft | Grifols SA vs. ANTA SPORTS PRODUCT | Grifols SA vs. Mobilezone Holding AG | Grifols SA vs. T MOBILE US |
| DICKER DATA vs. HK Electric Investments | DICKER DATA vs. Perma Fix Environmental Services | DICKER DATA vs. Virtus Investment Partners | DICKER DATA vs. COSMOSTEEL HLDGS |
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 CEOs Directory module to screen CEOs from public companies around the world.
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