Correlation Between Tema ETF and IXSE
Can any of the company-specific risk be diversified away by investing in both Tema ETF and IXSE 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 Tema ETF and IXSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tema ETF Trust and IXSE, you can compare the effects of market volatilities on Tema ETF and IXSE 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 Tema ETF with a short position of IXSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema ETF and IXSE.
Diversification Opportunities for Tema ETF and IXSE
Very good diversification
The 3 months correlation between Tema and IXSE is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tema ETF Trust and IXSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IXSE and Tema ETF 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 Tema ETF Trust are associated (or correlated) with IXSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IXSE has no effect on the direction of Tema ETF i.e., Tema ETF and IXSE go up and down completely randomly.
Pair Corralation between Tema ETF and IXSE
If you would invest 3,388 in IXSE on August 27, 2024 and sell it today you would earn a total of 0.00 from holding IXSE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Tema ETF Trust vs. IXSE
Performance |
| Timeline |
| Tema ETF Trust |
| IXSE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tema ETF and IXSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tema ETF and IXSE
The main advantage of trading using opposite Tema ETF and IXSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tema ETF position performs unexpectedly, IXSE 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 IXSE will offset losses from the drop in IXSE's long position.| Tema ETF vs. VanEck Pharmaceutical ETF | Tema ETF vs. VanEck Biotech ETF | Tema ETF vs. VanEck Oil Services | Tema ETF vs. iShares Transportation Average |
| IXSE vs. Franklin FTSE India | IXSE vs. VanEck India Growth | IXSE vs. First Trust India | IXSE vs. Columbia India Consumer |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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