Correlation Between Madison ETFs and Tema Monopolies

Can any of the company-specific risk be diversified away by investing in both Madison ETFs and Tema Monopolies 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 Madison ETFs and Tema Monopolies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Madison ETFs Trust and Tema Monopolies and, you can compare the effects of market volatilities on Madison ETFs and Tema Monopolies 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 Madison ETFs with a short position of Tema Monopolies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Madison ETFs and Tema Monopolies.

Diversification Opportunities for Madison ETFs and Tema Monopolies

0.14

Correlation Coefficient

Madison ETFs  Tema Monopolies

Average diversification

The 3 months correlation between Madison and Tema is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Madison ETFs Trust and Tema Monopolies and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tema Monopolies and Madison ETFs 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 Madison ETFs Trust are associated (or correlated) with Tema Monopolies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tema Monopolies has no effect on the direction of Madison ETFs i.e., Madison ETFs and Tema Monopolies go up and down completely randomly.

Pair Corralation between Madison ETFs and Tema Monopolies

Given the investment horizon of 90 days Madison ETFs is expected to generate 2.04 times less return on investment than Tema Monopolies. In addition to that, Madison ETFs is 1.04 times more volatile than Tema Monopolies and. It trades about 0.03 of its total potential returns per unit of risk. Tema Monopolies and is currently generating about 0.06 per unit of volatility. If you would invest  3,411  in Tema Monopolies and on September 12, 2025 and sell it today you would earn a total of  82.00  from holding Tema Monopolies and or generate 2.4% return on investment over 90 days.

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

Madison ETFs Trust  vs.  Tema Monopolies and

Madison ETFs Trust

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Madison ETFs Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Madison ETFs is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Tema Monopolies

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Tema Monopolies and are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, Tema Monopolies is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Madison ETFs and Tema Monopolies

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

The idea behind Madison ETFs Trust and Tema Monopolies and 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.