Correlation Between Esfera Robotics and Templeton Global

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

Diversification Opportunities for Esfera Robotics and Templeton Global

0.0

Correlation Coefficient

Esfera Robotics  Templeton Global

Pay attention - limited upside

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

Pair Corralation between Esfera Robotics and Templeton Global

If you would invest  30,578  in Esfera Robotics R on September 22, 2024 and sell it today you would earn a total of  4,270  from holding Esfera Robotics R or generate 13.96% 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.  Templeton Global Bond

Esfera Robotics R

Risk-Adjusted Performance

14 of 100

Solid

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

Templeton Global Bond

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Templeton Global Bond has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively steady basic indicators, Templeton Global is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Esfera Robotics and Templeton Global

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

The idea behind Esfera Robotics R and Templeton Global Bond 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.