Correlation Between Gabriel Holding and Shape Robotics
Can any of the company-specific risk be diversified away by investing in both Gabriel Holding 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 Gabriel Holding and Shape Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabriel Holding and Shape Robotics AS, you can compare the effects of market volatilities on Gabriel Holding 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 Gabriel Holding with a short position of Shape Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabriel Holding and Shape Robotics.
Diversification Opportunities for Gabriel Holding and Shape Robotics
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gabriel and Shape is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gabriel Holding 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 Gabriel Holding 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 Gabriel Holding 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 Gabriel Holding i.e., Gabriel Holding and Shape Robotics go up and down completely randomly.
Pair Corralation between Gabriel Holding and Shape Robotics
Assuming the 90 days trading horizon Gabriel Holding is expected to under-perform the Shape Robotics. But the stock apears to be less risky and, when comparing its historical volatility, Gabriel Holding is 1.64 times less risky than Shape Robotics. The stock trades about -0.09 of its potential returns per unit of risk. The Shape Robotics AS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,913 in Shape Robotics AS on December 1, 2024 and sell it today you would lose (198.00) from holding Shape Robotics AS or give up 10.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabriel Holding vs. Shape Robotics AS
Performance |
| Timeline |
| Gabriel Holding |
| Shape Robotics AS |
Gabriel Holding and Shape Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabriel Holding and Shape Robotics
The main advantage of trading using opposite Gabriel Holding and Shape Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabriel Holding 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.| Gabriel Holding vs. SP Group AS | Gabriel Holding vs. Columbus AS | Gabriel Holding vs. Schouw Co | Gabriel Holding 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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