Correlation Between BetaShares Geared and ETFS ROBO
Can any of the company-specific risk be diversified away by investing in both BetaShares Geared and ETFS ROBO 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 BetaShares Geared and ETFS ROBO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaShares Geared Australian and ETFS ROBO Global, you can compare the effects of market volatilities on BetaShares Geared and ETFS ROBO 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 BetaShares Geared with a short position of ETFS ROBO. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaShares Geared and ETFS ROBO.
Diversification Opportunities for BetaShares Geared and ETFS ROBO
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BetaShares and ETFS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding BetaShares Geared Australian and ETFS ROBO Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFS ROBO Global and BetaShares Geared 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 BetaShares Geared Australian are associated (or correlated) with ETFS ROBO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFS ROBO Global has no effect on the direction of BetaShares Geared i.e., BetaShares Geared and ETFS ROBO go up and down completely randomly.
Pair Corralation between BetaShares Geared and ETFS ROBO
Assuming the 90 days trading horizon BetaShares Geared Australian is expected to generate 1.19 times more return on investment than ETFS ROBO. However, BetaShares Geared is 1.19 times more volatile than ETFS ROBO Global. It trades about 0.29 of its potential returns per unit of risk. ETFS ROBO Global is currently generating about 0.22 per unit of risk. If you would invest 3,120 in BetaShares Geared Australian on September 3, 2024 and sell it today you would earn a total of 248.00 from holding BetaShares Geared Australian or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaShares Geared Australian vs. ETFS ROBO Global
Performance |
| Timeline |
| BetaShares Geared |
| ETFS ROBO Global |
BetaShares Geared and ETFS ROBO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaShares Geared and ETFS ROBO
The main advantage of trading using opposite BetaShares Geared and ETFS ROBO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaShares Geared position performs unexpectedly, ETFS ROBO 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 ETFS ROBO will offset losses from the drop in ETFS ROBO's long position.| BetaShares Geared vs. Betashares Asia Technology | BetaShares Geared vs. CD Private Equity | BetaShares Geared vs. BetaShares Australia 200 | BetaShares Geared vs. Australian High Interest |
| ETFS ROBO vs. Betashares Asia Technology | ETFS ROBO vs. CD Private Equity | ETFS ROBO vs. BetaShares Australia 200 | ETFS ROBO vs. Australian High Interest |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |