Correlation Between Esfera Robotics and BGF World

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

Diversification Opportunities for Esfera Robotics and BGF World

0.0

Correlation Coefficient

Esfera Robotics  BGF World

Pay attention - limited upside

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

Pair Corralation between Esfera Robotics and BGF World

If you would invest  32,190  in Esfera Robotics R on October 6, 2024 and sell it today you would earn a total of  3,245  from holding Esfera Robotics R or generate 10.08% 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.  BGF World Gold

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

BGF World Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BGF World Gold has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound basic indicators, BGF World is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Esfera Robotics and BGF World

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

The idea behind Esfera Robotics R and BGF World Gold 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.