Correlation Between Inhome Prime and Robot SA

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

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

Diversification Opportunities for Inhome Prime and Robot SA

0.0

Correlation Coefficient

Inhome Prime  Robot SA

Pay attention - limited upside

The 3 months correlation between Inhome and Robot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Inhome Prime Properties and Robot SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robot SA and Inhome Prime 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 Inhome Prime Properties 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 Inhome Prime i.e., Inhome Prime and Robot SA go up and down completely randomly.

Pair Corralation between Inhome Prime and Robot SA

If you would invest  176.00  in Robot SA on December 29, 2024 and sell it today you would earn a total of  14.00  from holding Robot SA or generate 7.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Inhome Prime Properties  vs.  Robot SA

Inhome Prime Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inhome Prime Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Inhome Prime is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Robot SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Robot SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Robot SA may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Inhome Prime and Robot SA

The main advantage of trading using opposite Inhome Prime and Robot SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhome Prime 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 Inhome Prime Properties 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.