Correlation Between Esfera Robotics and DWS Aktien

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

Diversification Opportunities for Esfera Robotics and DWS Aktien

0.11

Correlation Coefficient

Esfera Robotics  DWS Aktien

Average diversification

The 3 months correlation between Esfera and DWS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Esfera Robotics R and DWS Aktien Strategie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS Aktien Strategie 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 DWS Aktien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS Aktien Strategie has no effect on the direction of Esfera Robotics i.e., Esfera Robotics and DWS Aktien go up and down completely randomly.

Pair Corralation between Esfera Robotics and DWS Aktien

Assuming the 90 days trading horizon Esfera Robotics is expected to generate 1.08 times less return on investment than DWS Aktien. In addition to that, Esfera Robotics is 1.61 times more volatile than DWS Aktien Strategie. It trades about 0.15 of its total potential returns per unit of risk. DWS Aktien Strategie is currently generating about 0.27 per unit of volatility. If you would invest  49,878  in DWS Aktien Strategie on September 15, 2024 and sell it today you would earn a total of  1,866  from holding DWS Aktien Strategie or generate 3.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.91%
Values	Daily Returns

Esfera Robotics R  vs.  DWS Aktien Strategie

Esfera Robotics R

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Esfera Robotics R are ranked lower than 21 (%) 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.

DWS Aktien Strategie

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DWS Aktien Strategie are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, DWS Aktien is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Esfera Robotics and DWS Aktien

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

The idea behind Esfera Robotics R and DWS Aktien Strategie 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.