Correlation Between Green Hydrogen and Shape Robotics
Can any of the company-specific risk be diversified away by investing in both Green Hydrogen 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 Green Hydrogen and Shape Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Hydrogen Systems and Shape Robotics AS, you can compare the effects of market volatilities on Green Hydrogen 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 Green Hydrogen with a short position of Shape Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Hydrogen and Shape Robotics.
Diversification Opportunities for Green Hydrogen and Shape Robotics
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Green and Shape is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Green Hydrogen Systems 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 Green Hydrogen 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 Green Hydrogen Systems 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 Green Hydrogen i.e., Green Hydrogen and Shape Robotics go up and down completely randomly.
Pair Corralation between Green Hydrogen and Shape Robotics
Assuming the 90 days trading horizon Green Hydrogen Systems is expected to generate 1.02 times more return on investment than Shape Robotics. However, Green Hydrogen is 1.02 times more volatile than Shape Robotics AS. It trades about 0.25 of its potential returns per unit of risk. Shape Robotics AS is currently generating about 0.07 per unit of risk. If you would invest 212.00 in Green Hydrogen Systems on August 30, 2024 and sell it today you would earn a total of 112.00 from holding Green Hydrogen Systems or generate 52.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Hydrogen Systems vs. Shape Robotics AS
Performance |
| Timeline |
| Green Hydrogen Systems |
| Shape Robotics AS |
Green Hydrogen and Shape Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Hydrogen and Shape Robotics
The main advantage of trading using opposite Green Hydrogen and Shape Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Hydrogen 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.| Green Hydrogen vs. Ambu AS | Green Hydrogen vs. GN Store Nord | Green Hydrogen vs. Bavarian Nordic | Green Hydrogen vs. FLSmidth Co |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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