Correlation Between Shape Robotics and FOM Technologies
Can any of the company-specific risk be diversified away by investing in both Shape Robotics and FOM Technologies 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 FOM Technologies 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 FOM Technologies AS, you can compare the effects of market volatilities on Shape Robotics and FOM Technologies 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 FOM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shape Robotics and FOM Technologies.
Diversification Opportunities for Shape Robotics and FOM Technologies
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shape and FOM is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shape Robotics AS and FOM Technologies AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOM Technologies 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 FOM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOM Technologies has no effect on the direction of Shape Robotics i.e., Shape Robotics and FOM Technologies go up and down completely randomly.
Pair Corralation between Shape Robotics and FOM Technologies
Assuming the 90 days trading horizon Shape Robotics AS is expected to generate 2.14 times more return on investment than FOM Technologies. However, Shape Robotics is 2.14 times more volatile than FOM Technologies AS. It trades about 0.1 of its potential returns per unit of risk. FOM Technologies AS is currently generating about -0.46 per unit of risk. If you would invest 1,800 in Shape Robotics AS on August 29, 2024 and sell it today you would earn a total of 200.00 from holding Shape Robotics AS or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shape Robotics AS vs. FOM Technologies AS
Performance |
| Timeline |
| Shape Robotics AS |
| FOM Technologies |
Shape Robotics and FOM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shape Robotics and FOM Technologies
The main advantage of trading using opposite Shape Robotics and FOM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shape Robotics position performs unexpectedly, FOM Technologies 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 FOM Technologies will offset losses from the drop in FOM Technologies' long position.The idea behind Shape Robotics AS and FOM Technologies 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.| FOM Technologies vs. cBrain AS | FOM Technologies vs. Penneo AS | FOM Technologies vs. Shape Robotics AS | FOM Technologies vs. ALK Abell 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |