Correlation Between Monsenso and Shape Robotics
Can any of the company-specific risk be diversified away by investing in both Monsenso 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 Monsenso and Shape Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monsenso AS and Shape Robotics AS, you can compare the effects of market volatilities on Monsenso 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 Monsenso with a short position of Shape Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monsenso and Shape Robotics.
Diversification Opportunities for Monsenso and Shape Robotics
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Monsenso and Shape is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Monsenso 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 Monsenso 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 Monsenso 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 Monsenso i.e., Monsenso and Shape Robotics go up and down completely randomly.
Pair Corralation between Monsenso and Shape Robotics
Assuming the 90 days trading horizon Monsenso AS is expected to generate 2.41 times more return on investment than Shape Robotics. However, Monsenso is 2.41 times more volatile than Shape Robotics AS. It trades about 0.04 of its potential returns per unit of risk. Shape Robotics AS is currently generating about 0.0 per unit of risk. If you would invest 49.00 in Monsenso AS on August 29, 2024 and sell it today you would lose (3.00) from holding Monsenso AS or give up 6.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monsenso AS vs. Shape Robotics AS
Performance |
| Timeline |
| Monsenso AS |
| Shape Robotics AS |
Monsenso and Shape Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monsenso and Shape Robotics
The main advantage of trading using opposite Monsenso and Shape Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monsenso 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.| Monsenso vs. FOM Technologies AS | Monsenso vs. Penneo AS | Monsenso vs. BioPorto | Monsenso vs. Shape Robotics AS |
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 CEOs Directory module to screen CEOs from public companies around the world.
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