Correlation Between Elaia Investment and Robot SA

Can any of the company-specific risk be diversified away by investing in both Elaia Investment and Robot SA 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 Elaia Investment and Robot SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Elaia Investment Spain and Robot SA, you can compare the effects of market volatilities on Elaia Investment and Robot SA 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 Elaia Investment with a short position of Robot SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elaia Investment and Robot SA.

Diversification Opportunities for Elaia Investment and Robot SA

-0.38

Correlation Coefficient

Elaia Investment  Robot SA

Very good diversification

The 3 months correlation between Elaia and Robot is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Elaia Investment Spain and Robot SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robot SA and Elaia Investment 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 Elaia Investment Spain are associated (or correlated) with Robot SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robot SA has no effect on the direction of Elaia Investment i.e., Elaia Investment and Robot SA go up and down completely randomly.

Pair Corralation between Elaia Investment and Robot SA

Assuming the 90 days trading horizon Elaia Investment Spain is expected to under-perform the Robot SA. In addition to that, Elaia Investment is 1.04 times more volatile than Robot SA. It trades about -0.38 of its total potential returns per unit of risk. Robot SA is currently generating about 0.14 per unit of volatility. If you would invest  167.00  in Robot SA on December 27, 2024 and sell it today you would earn a total of  23.00  from holding Robot SA or generate 13.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Elaia Investment Spain  vs.  Robot SA

Elaia Investment Spain

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elaia Investment Spain has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Robot SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Robot SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Robot SA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Elaia Investment and Robot SA

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

The idea behind Elaia Investment Spain and Robot SA 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 CEOs Directory module to screen CEOs from public companies around the world.