Correlation Between Tema ETF and RBB Fund
Can any of the company-specific risk be diversified away by investing in both Tema ETF and RBB Fund 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 RBB Fund 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 The RBB Fund, you can compare the effects of market volatilities on Tema ETF and RBB Fund 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 RBB Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema ETF and RBB Fund.
Diversification Opportunities for Tema ETF and RBB Fund
Very good diversification
The 3 months correlation between Tema and RBB is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Tema ETF Trust and The RBB Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBB Fund 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 RBB Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBB Fund has no effect on the direction of Tema ETF i.e., Tema ETF and RBB Fund go up and down completely randomly.
Pair Corralation between Tema ETF and RBB Fund
Considering the 90-day investment horizon Tema ETF Trust is expected to under-perform the RBB Fund. But the etf apears to be less risky and, when comparing its historical volatility, Tema ETF Trust is 1.2 times less risky than RBB Fund. The etf trades about -0.03 of its potential returns per unit of risk. The The RBB Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,940 in The RBB Fund on August 26, 2024 and sell it today you would earn a total of 920.00 from holding The RBB Fund or generate 31.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tema ETF Trust vs. The RBB Fund
Performance |
| Timeline |
| Tema ETF Trust |
| RBB Fund |
Tema ETF and RBB Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tema ETF and RBB Fund
The main advantage of trading using opposite Tema ETF and RBB Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tema ETF position performs unexpectedly, RBB Fund 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 RBB Fund will offset losses from the drop in RBB Fund's long position.| Tema ETF vs. Smith Nephew SNATS | Tema ETF vs. Fresenius Medical Care | Tema ETF vs. Fomento Economico Mexicano | Tema ETF vs. The Cooper Companies, |
| RBB Fund vs. Invesco DWA Momentum | RBB Fund vs. Invesco DWA Developed | RBB Fund vs. Invesco DWA Emerging | RBB Fund vs. First Trust Small |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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