Correlation Between Esfera Robotics and Caixabank Seleccin

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

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

Diversification Opportunities for Esfera Robotics and Caixabank Seleccin

0.92

Correlation Coefficient

Esfera Robotics  Caixabank Seleccin

Almost no diversification

The 3 months correlation between Esfera and Caixabank is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Esfera Robotics R and Caixabank Seleccin Tendencias in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixabank Seleccin and Esfera Robotics 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 Esfera Robotics R are associated (or correlated) with Caixabank Seleccin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixabank Seleccin has no effect on the direction of Esfera Robotics i.e., Esfera Robotics and Caixabank Seleccin go up and down completely randomly.

Pair Corralation between Esfera Robotics and Caixabank Seleccin

Assuming the 90 days trading horizon Esfera Robotics R is expected to generate 1.91 times more return on investment than Caixabank Seleccin. However, Esfera Robotics is 1.91 times more volatile than Caixabank Seleccin Tendencias. It trades about 0.06 of its potential returns per unit of risk. Caixabank Seleccin Tendencias is currently generating about -0.45 per unit of risk. If you would invest  35,242  in Esfera Robotics R on October 1, 2024 and sell it today you would earn a total of  326.00  from holding Esfera Robotics R or generate 0.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	94.12%
Values	Daily Returns

Esfera Robotics R  vs.  Caixabank Seleccin Tendencias

Esfera Robotics R

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Esfera Robotics R are ranked lower than 16 (%) 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.

Caixabank Seleccin

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Caixabank Seleccin Tendencias are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Caixabank Seleccin is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Esfera Robotics and Caixabank Seleccin

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

The idea behind Esfera Robotics R and Caixabank Seleccin Tendencias 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.