Correlation Between Esfera Robotics and Templeton Emerging

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

Diversification Opportunities for Esfera Robotics and Templeton Emerging

-0.32

Correlation Coefficient

Esfera Robotics  Templeton Emerging

Very good diversification

The 3 months correlation between Esfera and Templeton is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Esfera Robotics R and Templeton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Emerging 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 Templeton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Emerging has no effect on the direction of Esfera Robotics i.e., Esfera Robotics and Templeton Emerging go up and down completely randomly.

Pair Corralation between Esfera Robotics and Templeton Emerging

Assuming the 90 days trading horizon Esfera Robotics R is expected to generate 0.88 times more return on investment than Templeton Emerging. However, Esfera Robotics R is 1.14 times less risky than Templeton Emerging. It trades about 0.1 of its potential returns per unit of risk. Templeton Emerging Markets is currently generating about 0.04 per unit of risk. If you would invest  21,295  in Esfera Robotics R on October 11, 2024 and sell it today you would earn a total of  14,357  from holding Esfera Robotics R or generate 67.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	45.09%
Values	Daily Returns

Esfera Robotics R  vs.  Templeton Emerging Markets

Esfera Robotics R

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Esfera Robotics R are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Esfera Robotics may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Templeton Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Templeton Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, Templeton Emerging is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Esfera Robotics and Templeton Emerging

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

The idea behind Esfera Robotics R and Templeton Emerging Markets 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.