Correlation Between Fevertree Drinks and Robex Resources

Can any of the company-specific risk be diversified away by investing in both Fevertree Drinks and Robex Resources 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 Fevertree Drinks and Robex Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fevertree Drinks Plc and Robex Resources, you can compare the effects of market volatilities on Fevertree Drinks and Robex Resources 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 Fevertree Drinks with a short position of Robex Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fevertree Drinks and Robex Resources.

Diversification Opportunities for Fevertree Drinks and Robex Resources

-0.23

Correlation Coefficient

Fevertree Drinks  Robex Resources

Very good diversification

The 3 months correlation between Fevertree and Robex is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fevertree Drinks Plc and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex Resources and Fevertree Drinks 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 Fevertree Drinks Plc are associated (or correlated) with Robex Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robex Resources has no effect on the direction of Fevertree Drinks i.e., Fevertree Drinks and Robex Resources go up and down completely randomly.

Pair Corralation between Fevertree Drinks and Robex Resources

Assuming the 90 days horizon Fevertree Drinks Plc is expected to under-perform the Robex Resources. In addition to that, Fevertree Drinks is 1.02 times more volatile than Robex Resources. It trades about -0.02 of its total potential returns per unit of risk. Robex Resources is currently generating about 0.15 per unit of volatility. If you would invest  260.00  in Robex Resources on August 31, 2025 and sell it today you would earn a total of  78.00  from holding Robex Resources or generate 30.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Fevertree Drinks Plc  vs.  Robex Resources

Fevertree Drinks Plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Fevertree Drinks Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Fevertree Drinks is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Robex Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Robex Resources are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Robex Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fevertree Drinks and Robex Resources

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

The idea behind Fevertree Drinks Plc and Robex Resources 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.