Correlation Between Esfera Robotics and Allianz Clean

Can any of the company-specific risk be diversified away by investing in both Esfera Robotics and Allianz Clean 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 Allianz Clean 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 Allianz Clean Planet, you can compare the effects of market volatilities on Esfera Robotics and Allianz Clean 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 Allianz Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esfera Robotics and Allianz Clean.

Diversification Opportunities for Esfera Robotics and Allianz Clean

0.03

Correlation Coefficient

Esfera Robotics  Allianz Clean

Significant diversification

The 3 months correlation between Esfera and Allianz is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Esfera Robotics R and Allianz Clean Planet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Clean Planet 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 Allianz Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Clean Planet has no effect on the direction of Esfera Robotics i.e., Esfera Robotics and Allianz Clean go up and down completely randomly.

Pair Corralation between Esfera Robotics and Allianz Clean

Assuming the 90 days trading horizon Esfera Robotics R is expected to generate 1.38 times more return on investment than Allianz Clean. However, Esfera Robotics is 1.38 times more volatile than Allianz Clean Planet. It trades about 0.21 of its potential returns per unit of risk. Allianz Clean Planet is currently generating about 0.03 per unit of risk. If you would invest  32,032  in Esfera Robotics R on October 26, 2024 and sell it today you would earn a total of  5,128  from holding Esfera Robotics R or generate 16.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Esfera Robotics R  vs.  Allianz Clean Planet

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 weak basic indicators, Esfera Robotics sustained solid returns over the last few months and may actually be approaching a breakup point.

Allianz Clean Planet

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Allianz Clean Planet are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent basic indicators, Allianz Clean is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Esfera Robotics and Allianz Clean

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

The idea behind Esfera Robotics R and Allianz Clean Planet 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.