Correlation Between ESGL Holdings and 60 Degrees
Can any of the company-specific risk be diversified away by investing in both ESGL Holdings and 60 Degrees 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 ESGL Holdings and 60 Degrees into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESGL Holdings Limited and 60 Degrees Pharmaceuticals,, you can compare the effects of market volatilities on ESGL Holdings and 60 Degrees 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 ESGL Holdings with a short position of 60 Degrees. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESGL Holdings and 60 Degrees.
Diversification Opportunities for ESGL Holdings and 60 Degrees
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between ESGL and SXTP is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding ESGL Holdings Limited and 60 Degrees Pharmaceuticals, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 60 Degrees Pharmaceu and ESGL Holdings 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 ESGL Holdings Limited are associated (or correlated) with 60 Degrees. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 60 Degrees Pharmaceu has no effect on the direction of ESGL Holdings i.e., ESGL Holdings and 60 Degrees go up and down completely randomly.
Pair Corralation between ESGL Holdings and 60 Degrees
Given the investment horizon of 90 days ESGL Holdings Limited is expected to generate 0.88 times more return on investment than 60 Degrees. However, ESGL Holdings Limited is 1.14 times less risky than 60 Degrees. It trades about 0.05 of its potential returns per unit of risk. 60 Degrees Pharmaceuticals, is currently generating about -0.2 per unit of risk. If you would invest 242.00 in ESGL Holdings Limited on May 29, 2025 and sell it today you would earn a total of 18.00 from holding ESGL Holdings Limited or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
ESGL Holdings Limited vs. 60 Degrees Pharmaceuticals,
Performance |
| Timeline |
| ESGL Holdings Limited |
| 60 Degrees Pharmaceu |
ESGL Holdings and 60 Degrees Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ESGL Holdings and 60 Degrees
The main advantage of trading using opposite ESGL Holdings and 60 Degrees positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESGL Holdings position performs unexpectedly, 60 Degrees 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 60 Degrees will offset losses from the drop in 60 Degrees' long position.| ESGL Holdings vs. Anghami De | ESGL Holdings vs. Anaergia | ESGL Holdings vs. Aqua Metals | ESGL Holdings vs. ARB IOT Group |
| 60 Degrees vs. Schweiter Technologies AG | 60 Degrees vs. Nextplat Corp | 60 Degrees vs. Centessa Pharmaceuticals PLC | 60 Degrees vs. Clearmind Medicine Common |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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