Correlation Between Esfera Robotics and BEKA LUX

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

Diversification Opportunities for Esfera Robotics and BEKA LUX

0.78

Correlation Coefficient

Esfera Robotics  BEKA LUX

Poor diversification

The 3 months correlation between Esfera and BEKA is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Esfera Robotics R and BEKA LUX SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEKA LUX SICAV 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 BEKA LUX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEKA LUX SICAV has no effect on the direction of Esfera Robotics i.e., Esfera Robotics and BEKA LUX go up and down completely randomly.

Pair Corralation between Esfera Robotics and BEKA LUX

Assuming the 90 days trading horizon Esfera Robotics R is expected to generate 4.46 times more return on investment than BEKA LUX. However, Esfera Robotics is 4.46 times more volatile than BEKA LUX SICAV. It trades about 0.29 of its potential returns per unit of risk. BEKA LUX SICAV is currently generating about 0.15 per unit of risk. If you would invest  29,464  in Esfera Robotics R on September 11, 2024 and sell it today you would earn a total of  6,267  from holding Esfera Robotics R or generate 21.27% return on investment over 90 days.

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

Esfera Robotics R  vs.  BEKA LUX SICAV

Esfera Robotics R

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Esfera Robotics R are ranked lower than 22 (%) 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.

BEKA LUX SICAV

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BEKA LUX SICAV are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy basic indicators, BEKA LUX is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Esfera Robotics and BEKA LUX

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

The idea behind Esfera Robotics R and BEKA LUX SICAV 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.