Correlation Between Esfera Robotics and FF European

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

Diversification Opportunities for Esfera Robotics and FF European

0.0

Correlation Coefficient

Esfera Robotics  FF European

Pay attention - limited upside

The 3 months correlation between Esfera and FJ2B is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Esfera Robotics R and FF European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FF European 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 FF European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FF European has no effect on the direction of Esfera Robotics i.e., Esfera Robotics and FF European go up and down completely randomly.

Pair Corralation between Esfera Robotics and FF European

If you would invest  22,590  in Esfera Robotics R on October 5, 2024 and sell it today you would earn a total of  12,845  from holding Esfera Robotics R or generate 56.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Esfera Robotics R  vs.  FF European

Esfera Robotics R

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Esfera Robotics R has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat weak basic indicators, Esfera Robotics sustained solid returns over the last few months and may actually be approaching a breakup point.

FF European

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FF European has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, FF European is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Esfera Robotics and FF European

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

The idea behind Esfera Robotics R and FF European 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.