Correlation Between Shape Robotics and BioPorto
Can any of the company-specific risk be diversified away by investing in both Shape Robotics and BioPorto 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 Shape Robotics and BioPorto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shape Robotics AS and BioPorto, you can compare the effects of market volatilities on Shape Robotics and BioPorto 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 Shape Robotics with a short position of BioPorto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shape Robotics and BioPorto.
Diversification Opportunities for Shape Robotics and BioPorto
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shape and BioPorto is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shape Robotics AS and BioPorto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioPorto and Shape Robotics 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 Shape Robotics AS are associated (or correlated) with BioPorto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioPorto has no effect on the direction of Shape Robotics i.e., Shape Robotics and BioPorto go up and down completely randomly.
Pair Corralation between Shape Robotics and BioPorto
Assuming the 90 days trading horizon Shape Robotics AS is expected to generate 0.93 times more return on investment than BioPorto. However, Shape Robotics AS is 1.08 times less risky than BioPorto. It trades about 0.01 of its potential returns per unit of risk. BioPorto is currently generating about -0.01 per unit of risk. If you would invest 2,382 in Shape Robotics AS on August 31, 2024 and sell it today you would lose (407.00) from holding Shape Robotics AS or give up 17.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shape Robotics AS vs. BioPorto
Performance |
| Timeline |
| Shape Robotics AS |
| BioPorto |
Shape Robotics and BioPorto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shape Robotics and BioPorto
The main advantage of trading using opposite Shape Robotics and BioPorto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shape Robotics position performs unexpectedly, BioPorto 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 BioPorto will offset losses from the drop in BioPorto's long position.| Shape Robotics vs. FOM Technologies AS | Shape Robotics vs. cBrain AS | Shape Robotics vs. Green Hydrogen Systems | Shape Robotics vs. BioPorto |
| BioPorto vs. Ambu AS | BioPorto vs. Bavarian Nordic | BioPorto vs. Zealand Pharma AS | BioPorto vs. Orphazyme 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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