Correlation Between Fluidra and Grifols SA

Can any of the company-specific risk be diversified away by investing in both Fluidra 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 Fluidra and Grifols SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fluidra and Grifols SA, you can compare the effects of market volatilities on Fluidra 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 Fluidra with a short position of Grifols SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluidra and Grifols SA.

Diversification Opportunities for Fluidra and Grifols SA

0.0

Correlation Coefficient

Fluidra  Grifols SA

Pay attention - limited upside

The 3 months correlation between Fluidra and Grifols is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fluidra and Grifols SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grifols SA and Fluidra 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 Fluidra 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 has no effect on the direction of Fluidra i.e., Fluidra and Grifols SA go up and down completely randomly.

Pair Corralation between Fluidra and Grifols SA

If you would invest  0.00  in Fluidra on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Fluidra or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.52%
Values	Daily Returns

Fluidra  vs.  Grifols SA

Fluidra

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fluidra has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Fluidra is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Grifols SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grifols SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Fluidra and Grifols SA

The main advantage of trading using opposite Fluidra and Grifols SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluidra 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.

The idea behind Fluidra and Grifols SA 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.