Correlation Between Tema Global and Nicholas Fixed

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Tema Global and Nicholas Fixed 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 Tema Global and Nicholas Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tema Global and Nicholas Fixed Income, you can compare the effects of market volatilities on Tema Global and Nicholas Fixed 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 Tema Global with a short position of Nicholas Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema Global and Nicholas Fixed.

Diversification Opportunities for Tema Global and Nicholas Fixed

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between Tema and Nicholas is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tema Global and Nicholas Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicholas Fixed Income and Tema Global 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 Tema Global are associated (or correlated) with Nicholas Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicholas Fixed Income has no effect on the direction of Tema Global i.e., Tema Global and Nicholas Fixed go up and down completely randomly.

Pair Corralation between Tema Global and Nicholas Fixed

If you would invest  1,777  in Nicholas Fixed Income on September 1, 2025 and sell it today you would earn a total of  28.00  from holding Nicholas Fixed Income or generate 1.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy1.56%
ValuesDaily Returns

Tema Global  vs.  Nicholas Fixed Income

 Performance 
       Timeline  
Tema Global 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Tema Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Tema Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Nicholas Fixed Income 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Nicholas Fixed Income are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Nicholas Fixed is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Tema Global and Nicholas Fixed Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Tema Global and Nicholas Fixed

The main advantage of trading using opposite Tema Global and Nicholas Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tema Global position performs unexpectedly, Nicholas Fixed 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 Nicholas Fixed will offset losses from the drop in Nicholas Fixed's long position.
The idea behind Tema Global and Nicholas Fixed Income 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Complementary Tools

Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Transaction History
View history of all your transactions and understand their impact on performance
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
CEOs Directory
Screen CEOs from public companies around the world
Fundamental Analysis
View fundamental data based on most recent published financial statements