Correlation Between Robeco Sust and Cardano Impact

Can any of the company-specific risk be diversified away by investing in both Robeco Sust and Cardano Impact 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 Robeco Sust and Cardano Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Robeco Sust Global and Cardano Impact Equity, you can compare the effects of market volatilities on Robeco Sust and Cardano Impact 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 Robeco Sust with a short position of Cardano Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robeco Sust and Cardano Impact.

Diversification Opportunities for Robeco Sust and Cardano Impact

0.92

Correlation Coefficient

Robeco Sust  Cardano Impact

Almost no diversification

The 3 months correlation between Robeco and Cardano is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Robeco Sust Global and Cardano Impact Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardano Impact Equity and Robeco Sust 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 Robeco Sust Global are associated (or correlated) with Cardano Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardano Impact Equity has no effect on the direction of Robeco Sust i.e., Robeco Sust and Cardano Impact go up and down completely randomly.

Pair Corralation between Robeco Sust and Cardano Impact

Assuming the 90 days trading horizon Robeco Sust is expected to generate 1.08 times less return on investment than Cardano Impact. But when comparing it to its historical volatility, Robeco Sust Global is 1.4 times less risky than Cardano Impact. It trades about 0.16 of its potential returns per unit of risk. Cardano Impact Equity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4,944  in Cardano Impact Equity on May 3, 2025 and sell it today you would earn a total of  400.00  from holding Cardano Impact Equity or generate 8.09% return on investment over 90 days.

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

Robeco Sust Global  vs.  Cardano Impact Equity

Robeco Sust Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Robeco Sust Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Robeco Sust may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Cardano Impact Equity

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cardano Impact Equity are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of comparatively unfluctuating basic indicators, Cardano Impact may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Robeco Sust and Cardano Impact

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

The idea behind Robeco Sust Global and Cardano Impact Equity 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 Global Correlations module to find global opportunities by holding instruments from different markets.