Correlation Between Jeudan and Shape Robotics
Can any of the company-specific risk be diversified away by investing in both Jeudan 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 Jeudan and Shape Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeudan and Shape Robotics AS, you can compare the effects of market volatilities on Jeudan 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 Jeudan with a short position of Shape Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeudan and Shape Robotics.
Diversification Opportunities for Jeudan and Shape Robotics
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jeudan and Shape is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jeudan 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 Jeudan 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 Jeudan 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 Jeudan i.e., Jeudan and Shape Robotics go up and down completely randomly.
Pair Corralation between Jeudan and Shape Robotics
Assuming the 90 days trading horizon Jeudan is expected to under-perform the Shape Robotics. But the stock apears to be less risky and, when comparing its historical volatility, Jeudan is 6.85 times less risky than Shape Robotics. The stock trades about -0.52 of its potential returns per unit of risk. The Shape Robotics AS is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,625 in Shape Robotics AS on September 3, 2024 and sell it today you would earn a total of 545.00 from holding Shape Robotics AS or generate 33.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeudan vs. Shape Robotics AS
Performance |
| Timeline |
| Jeudan |
| Shape Robotics AS |
Jeudan and Shape Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeudan and Shape Robotics
The main advantage of trading using opposite Jeudan and Shape Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeudan 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.The idea behind Jeudan and Shape Robotics AS 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.| Shape Robotics vs. cBrain AS | Shape Robotics vs. FOM Technologies AS | Shape Robotics vs. ChemoMetec AS | 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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