Correlation Between Technomeca Aerospace and Robot SA

Can any of the company-specific risk be diversified away by investing in both Technomeca Aerospace and Robot SA 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 Technomeca Aerospace and Robot SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Technomeca Aerospace SA and Robot SA, you can compare the effects of market volatilities on Technomeca Aerospace and Robot SA 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 Technomeca Aerospace with a short position of Robot SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technomeca Aerospace and Robot SA.

Diversification Opportunities for Technomeca Aerospace and Robot SA

0.0

Correlation Coefficient

Technomeca Aerospace  Robot SA

Pay attention - limited upside

The 3 months correlation between Technomeca and Robot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Technomeca Aerospace SA and Robot SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robot SA and Technomeca Aerospace 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 Technomeca Aerospace SA are associated (or correlated) with Robot SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robot SA has no effect on the direction of Technomeca Aerospace i.e., Technomeca Aerospace and Robot SA go up and down completely randomly.

Pair Corralation between Technomeca Aerospace and Robot SA

If you would invest  177.00  in Robot SA on April 25, 2025 and sell it today you would earn a total of  77.00  from holding Robot SA or generate 43.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Technomeca Aerospace SA  vs.  Robot SA

Technomeca Aerospace

Risk-Adjusted Performance

Very Weak

Over the last 90 days Technomeca Aerospace SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Technomeca Aerospace is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Robot SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Robot SA are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Robot SA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Technomeca Aerospace and Robot SA

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

The idea behind Technomeca Aerospace SA and Robot SA 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.