Correlation Between Grifols SA and Charles River
Can any of the company-specific risk be diversified away by investing in both Grifols SA and Charles River 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 Charles River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grifols SA ADR and Charles River Laboratories, you can compare the effects of market volatilities on Grifols SA and Charles River 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 Charles River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grifols SA and Charles River.
Diversification Opportunities for Grifols SA and Charles River
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grifols and Charles is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Grifols SA ADR and Charles River Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charles River Labora 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 ADR are associated (or correlated) with Charles River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charles River Labora has no effect on the direction of Grifols SA i.e., Grifols SA and Charles River go up and down completely randomly.
Pair Corralation between Grifols SA and Charles River
Given the investment horizon of 90 days Grifols SA ADR is expected to under-perform the Charles River. But the stock apears to be less risky and, when comparing its historical volatility, Grifols SA ADR is 1.46 times less risky than Charles River. The stock trades about -0.2 of its potential returns per unit of risk. The Charles River Laboratories is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 15,500 in Charles River Laboratories on August 13, 2025 and sell it today you would earn a total of 1,397 from holding Charles River Laboratories or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grifols SA ADR vs. Charles River Laboratories
Performance |
| Timeline |
| Grifols SA ADR |
| Charles River Labora |
Grifols SA and Charles River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grifols SA and Charles River
The main advantage of trading using opposite Grifols SA and Charles River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grifols SA position performs unexpectedly, Charles River 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 Charles River will offset losses from the drop in Charles River's long position.| Grifols SA vs. Henry Schein | Grifols SA vs. Halozyme Therapeutics | Grifols SA vs. Molina Healthcare | Grifols SA vs. AptarGroup |
| Charles River vs. Qiagen NV | Charles River vs. Bio Rad Laboratories | Charles River vs. Baxter International | Charles River vs. Avantor |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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