Correlation Between Trustcash Holdings and Grifols SA
Can any of the company-specific risk be diversified away by investing in both Trustcash Holdings and Grifols 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 Trustcash Holdings and Grifols SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trustcash Holdings and Grifols SA ADR, you can compare the effects of market volatilities on Trustcash Holdings and Grifols 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 Trustcash Holdings with a short position of Grifols SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trustcash Holdings and Grifols SA.
Diversification Opportunities for Trustcash Holdings and Grifols SA
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trustcash and Grifols is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Trustcash Holdings and Grifols SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grifols SA ADR and Trustcash Holdings 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 Trustcash Holdings are associated (or correlated) with Grifols SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grifols SA ADR has no effect on the direction of Trustcash Holdings i.e., Trustcash Holdings and Grifols SA go up and down completely randomly.
Pair Corralation between Trustcash Holdings and Grifols SA
Given the investment horizon of 90 days Trustcash Holdings is expected to under-perform the Grifols SA. In addition to that, Trustcash Holdings is 6.37 times more volatile than Grifols SA ADR. It trades about -0.22 of its total potential returns per unit of risk. Grifols SA ADR is currently generating about 0.06 per unit of volatility. If you would invest 834.00 in Grifols SA ADR on August 27, 2024 and sell it today you would earn a total of 26.00 from holding Grifols SA ADR or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trustcash Holdings vs. Grifols SA ADR
Performance |
| Timeline |
| Trustcash Holdings |
| Grifols SA ADR |
Trustcash Holdings and Grifols SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trustcash Holdings and Grifols SA
The main advantage of trading using opposite Trustcash Holdings and Grifols SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trustcash Holdings position performs unexpectedly, Grifols 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 Grifols SA will offset losses from the drop in Grifols SA's long position.| Trustcash Holdings vs. Park Electrochemical | Trustcash Holdings vs. Innovative Solutions and | Trustcash Holdings vs. Curtiss Wright | Trustcash Holdings vs. National Presto Industries |
| Grifols SA vs. Novartis AG ADR | Grifols SA vs. AstraZeneca PLC ADR | Grifols SA vs. GlaxoSmithKline PLC ADR | Grifols SA vs. Roche Holding Ltd |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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