Correlation Between Polydex Pharmaceuticals and Grifols SA
Can any of the company-specific risk be diversified away by investing in both Polydex Pharmaceuticals 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 Polydex Pharmaceuticals and Grifols SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polydex Pharmaceuticals and Grifols SA, you can compare the effects of market volatilities on Polydex Pharmaceuticals 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 Polydex Pharmaceuticals with a short position of Grifols SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polydex Pharmaceuticals and Grifols SA.
Diversification Opportunities for Polydex Pharmaceuticals and Grifols SA
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Polydex and Grifols is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Polydex Pharmaceuticals and Grifols SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grifols SA and Polydex Pharmaceuticals 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 Polydex Pharmaceuticals 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 Polydex Pharmaceuticals i.e., Polydex Pharmaceuticals and Grifols SA go up and down completely randomly.
Pair Corralation between Polydex Pharmaceuticals and Grifols SA
If you would invest 619.00 in Grifols SA on January 26, 2024 and sell it today you would earn a total of 68.00 from holding Grifols SA or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Polydex Pharmaceuticals vs. Grifols SA
Performance |
| Timeline |
| Polydex Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Grifols SA |
Polydex Pharmaceuticals and Grifols SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polydex Pharmaceuticals and Grifols SA
The main advantage of trading using opposite Polydex Pharmaceuticals and Grifols SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polydex Pharmaceuticals 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.| Polydex Pharmaceuticals vs. ImmuCell | Polydex Pharmaceuticals vs. Senstar Technologies | Polydex Pharmaceuticals vs. Natural Alternatives International | Polydex Pharmaceuticals vs. Paragon Technologies |
| Grifols SA vs. Grifols SA ADR | Grifols SA vs. Pfizer Inc | Grifols SA vs. Sanofi ADR | Grifols SA vs. Organon Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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