Correlation Between Gestamp Automocion and Fluidra

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

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

Diversification Opportunities for Gestamp Automocion and Fluidra

0.66

Correlation Coefficient

Gestamp Automocion  Fluidra

Poor diversification

The 3 months correlation between Gestamp and Fluidra is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gestamp Automocion SA and Fluidra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluidra and Gestamp Automocion 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 Gestamp Automocion SA are associated (or correlated) with Fluidra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluidra has no effect on the direction of Gestamp Automocion i.e., Gestamp Automocion and Fluidra go up and down completely randomly.

Pair Corralation between Gestamp Automocion and Fluidra

Assuming the 90 days trading horizon Gestamp Automocion SA is expected to generate 1.22 times more return on investment than Fluidra. However, Gestamp Automocion is 1.22 times more volatile than Fluidra. It trades about 0.19 of its potential returns per unit of risk. Fluidra is currently generating about 0.13 per unit of risk. If you would invest  255.00  in Gestamp Automocion SA on April 24, 2025 and sell it today you would earn a total of  58.00  from holding Gestamp Automocion SA or generate 22.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Gestamp Automocion SA  vs.  Fluidra

Gestamp Automocion

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gestamp Automocion SA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Gestamp Automocion exhibited solid returns over the last few months and may actually be approaching a breakup point.

Fluidra

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fluidra are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Fluidra may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Gestamp Automocion and Fluidra

The main advantage of trading using opposite Gestamp Automocion and Fluidra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gestamp Automocion position performs unexpectedly, Fluidra 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 Fluidra will offset losses from the drop in Fluidra's long position.

The idea behind Gestamp Automocion SA and Fluidra 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.