Correlation Between Danske Andelskassers and Shape Robotics
Can any of the company-specific risk be diversified away by investing in both Danske Andelskassers 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 Danske Andelskassers and Shape Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Danske Andelskassers Bank and Shape Robotics AS, you can compare the effects of market volatilities on Danske Andelskassers 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 Danske Andelskassers with a short position of Shape Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Andelskassers and Shape Robotics.
Diversification Opportunities for Danske Andelskassers and Shape Robotics
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Danske and Shape is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Danske Andelskassers Bank 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 Danske Andelskassers 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 Danske Andelskassers Bank 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 Danske Andelskassers i.e., Danske Andelskassers and Shape Robotics go up and down completely randomly.
Pair Corralation between Danske Andelskassers and Shape Robotics
Assuming the 90 days trading horizon Danske Andelskassers Bank is expected to under-perform the Shape Robotics. But the stock apears to be less risky and, when comparing its historical volatility, Danske Andelskassers Bank is 10.1 times less risky than Shape Robotics. The stock trades about -0.14 of its potential returns per unit of risk. The Shape Robotics AS is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Shape Robotics AS on August 29, 2024 and sell it today you would earn a total of 200.00 from holding Shape Robotics AS or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danske Andelskassers Bank vs. Shape Robotics AS
Performance |
| Timeline |
| Danske Andelskassers Bank |
| Shape Robotics AS |
Danske Andelskassers and Shape Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Andelskassers and Shape Robotics
The main advantage of trading using opposite Danske Andelskassers and Shape Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Andelskassers 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.| Danske Andelskassers vs. Vestjysk Bank AS | Danske Andelskassers vs. Spar Nord Bank | Danske Andelskassers vs. Skjern Bank AS | Danske Andelskassers vs. RTX AS |
| Shape Robotics vs. FOM Technologies AS | Shape Robotics vs. Penneo AS | Shape Robotics vs. cBrain AS | Shape Robotics vs. Green Hydrogen Systems |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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