Correlation Between BlackRock Global and Esfera Robotics

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

By analyzing existing cross correlation between BlackRock Global Funds and Esfera Robotics R, you can compare the effects of market volatilities on BlackRock Global and Esfera Robotics 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 BlackRock Global with a short position of Esfera Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Global and Esfera Robotics.

Diversification Opportunities for BlackRock Global and Esfera Robotics

-0.17

Correlation Coefficient

BlackRock Global  Esfera Robotics

Good diversification

The 3 months correlation between BlackRock and Esfera is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Global Funds and Esfera Robotics R in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esfera Robotics R and BlackRock Global 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 BlackRock Global Funds are associated (or correlated) with Esfera Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esfera Robotics R has no effect on the direction of BlackRock Global i.e., BlackRock Global and Esfera Robotics go up and down completely randomly.

Pair Corralation between BlackRock Global and Esfera Robotics

Assuming the 90 days trading horizon BlackRock Global Funds is expected to under-perform the Esfera Robotics. But the fund apears to be less risky and, when comparing its historical volatility, BlackRock Global Funds is 1.1 times less risky than Esfera Robotics. The fund trades about -0.04 of its potential returns per unit of risk. The Esfera Robotics R is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  30,578  in Esfera Robotics R on September 22, 2024 and sell it today you would earn a total of  4,270  from holding Esfera Robotics R or generate 13.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BlackRock Global Funds  vs.  Esfera Robotics R

BlackRock Global Funds

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BlackRock Global Funds has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively steady basic indicators, BlackRock Global is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Esfera Robotics R

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Esfera Robotics R are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat fragile basic indicators, Esfera Robotics sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BlackRock Global and Esfera Robotics

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

The idea behind BlackRock Global Funds and Esfera Robotics R 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.