Correlation Between Main Thematic and Robo Global

Can any of the company-specific risk be diversified away by investing in both Main Thematic and Robo Global 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 Main Thematic and Robo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Main Thematic Innovation and Robo Global Robotics, you can compare the effects of market volatilities on Main Thematic and Robo Global 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 Main Thematic with a short position of Robo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main Thematic and Robo Global.

Diversification Opportunities for Main Thematic and Robo Global

0.6

Correlation Coefficient

Main Thematic  Robo Global

Poor diversification

The 3 months correlation between Main and Robo is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Main Thematic Innovation and Robo Global Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robo Global Robotics and Main Thematic 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 Main Thematic Innovation are associated (or correlated) with Robo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robo Global Robotics has no effect on the direction of Main Thematic i.e., Main Thematic and Robo Global go up and down completely randomly.

Pair Corralation between Main Thematic and Robo Global

Given the investment horizon of 90 days Main Thematic Innovation is expected to generate 1.1 times more return on investment than Robo Global. However, Main Thematic is 1.1 times more volatile than Robo Global Robotics. It trades about 0.36 of its potential returns per unit of risk. Robo Global Robotics is currently generating about 0.3 per unit of risk. If you would invest  1,856  in Main Thematic Innovation on April 30, 2025 and sell it today you would earn a total of  613.00  from holding Main Thematic Innovation or generate 33.03% return on investment over 90 days.

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

Main Thematic Innovation  vs.  Robo Global Robotics

Main Thematic Innovation

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Main Thematic Innovation are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Main Thematic unveiled solid returns over the last few months and may actually be approaching a breakup point.

Robo Global Robotics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Robo Global Robotics are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental drivers, Robo Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Main Thematic and Robo Global

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

The idea behind Main Thematic Innovation and Robo Global Robotics 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.