Correlation Between Interactive Strength and ESGL Holdings

Can any of the company-specific risk be diversified away by investing in both Interactive Strength and ESGL Holdings 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 Interactive Strength and ESGL Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Interactive Strength Common and ESGL Holdings Limited, you can compare the effects of market volatilities on Interactive Strength and ESGL Holdings 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 Interactive Strength with a short position of ESGL Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Strength and ESGL Holdings.

Diversification Opportunities for Interactive Strength and ESGL Holdings

-0.51

Correlation Coefficient

Interactive Strength  ESGL Holdings

Excellent diversification

The 3 months correlation between Interactive and ESGL is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Strength Common and ESGL Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGL Holdings Limited and Interactive Strength 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 Interactive Strength Common are associated (or correlated) with ESGL Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGL Holdings Limited has no effect on the direction of Interactive Strength i.e., Interactive Strength and ESGL Holdings go up and down completely randomly.

Pair Corralation between Interactive Strength and ESGL Holdings

Given the investment horizon of 90 days Interactive Strength Common is expected to under-perform the ESGL Holdings. In addition to that, Interactive Strength is 1.74 times more volatile than ESGL Holdings Limited. It trades about -0.01 of its total potential returns per unit of risk. ESGL Holdings Limited is currently generating about 0.13 per unit of volatility. If you would invest  203.00  in ESGL Holdings Limited on May 2, 2025 and sell it today you would earn a total of  85.00  from holding ESGL Holdings Limited or generate 41.87% return on investment over 90 days.

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

Interactive Strength Common  vs.  ESGL Holdings Limited

Interactive Strength

Risk-Adjusted Performance

Very Weak

Over the last 90 days Interactive Strength Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

ESGL Holdings Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ESGL Holdings Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent technical and fundamental indicators, ESGL Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Interactive Strength and ESGL Holdings

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

The idea behind Interactive Strength Common and ESGL Holdings Limited 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.