Correlation Between Energy Select and Robo Global

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

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

Diversification Opportunities for Energy Select and Robo Global

0.49

Correlation Coefficient

Energy Select  Robo Global

Very weak diversification

The 3 months correlation between Energy and Robo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Energy Select Sector 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 Energy Select 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 Energy Select Sector 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 Energy Select i.e., Energy Select and Robo Global go up and down completely randomly.

Pair Corralation between Energy Select and Robo Global

Considering the 90-day investment horizon Energy Select is expected to generate 1.39 times less return on investment than Robo Global. In addition to that, Energy Select is 1.09 times more volatile than Robo Global Robotics. It trades about 0.16 of its total potential returns per unit of risk. Robo Global Robotics is currently generating about 0.25 per unit of volatility. If you would invest  6,471  in Robo Global Robotics on July 8, 2025 and sell it today you would earn a total of  311.00  from holding Robo Global Robotics or generate 4.81% return on investment over 90 days.

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

Energy Select Sector  vs.  Robo Global Robotics

Energy Select Sector

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Energy Select Sector are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound essential indicators, Energy Select is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Robo Global Robotics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Robo Global Robotics are ranked lower than 16 (%) 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 Energy Select and Robo Global

The main advantage of trading using opposite Energy Select and Robo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Select 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 Energy Select Sector 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.