Correlation Between CBrain AS and Shape Robotics
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Shape Robotics 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 CBrain AS and Shape Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Shape Robotics AS, you can compare the effects of market volatilities on CBrain AS and Shape Robotics 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 CBrain AS with a short position of Shape Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Shape Robotics.
Diversification Opportunities for CBrain AS and Shape Robotics
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CBrain and Shape is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Shape Robotics AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shape Robotics AS and CBrain AS 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 cBrain AS are associated (or correlated) with Shape Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shape Robotics AS has no effect on the direction of CBrain AS i.e., CBrain AS and Shape Robotics go up and down completely randomly.
Pair Corralation between CBrain AS and Shape Robotics
Assuming the 90 days trading horizon cBrain AS is expected to generate 0.85 times more return on investment than Shape Robotics. However, cBrain AS is 1.18 times less risky than Shape Robotics. It trades about 0.03 of its potential returns per unit of risk. Shape Robotics AS is currently generating about 0.01 per unit of risk. If you would invest 16,575 in cBrain AS on August 31, 2024 and sell it today you would earn a total of 4,125 from holding cBrain AS or generate 24.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
cBrain AS vs. Shape Robotics AS
Performance |
| Timeline |
| cBrain AS |
| Shape Robotics AS |
CBrain AS and Shape Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Shape Robotics
The main advantage of trading using opposite CBrain AS and Shape Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Shape Robotics 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 Shape Robotics will offset losses from the drop in Shape Robotics' long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Shape Robotics vs. FOM Technologies AS | Shape Robotics vs. cBrain AS | Shape Robotics vs. Green Hydrogen Systems | Shape Robotics vs. BioPorto |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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