Correlation Between Shape Robotics and Fundamental Invest
Can any of the company-specific risk be diversified away by investing in both Shape Robotics and Fundamental Invest 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 Fundamental Invest 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 Fundamental Invest Stock, you can compare the effects of market volatilities on Shape Robotics and Fundamental Invest 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 Fundamental Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shape Robotics and Fundamental Invest.
Diversification Opportunities for Shape Robotics and Fundamental Invest
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shape and Fundamental is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shape Robotics AS and Fundamental Invest Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Invest Stock 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 Fundamental Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Invest Stock has no effect on the direction of Shape Robotics i.e., Shape Robotics and Fundamental Invest go up and down completely randomly.
Pair Corralation between Shape Robotics and Fundamental Invest
Assuming the 90 days trading horizon Shape Robotics AS is expected to generate 8.05 times more return on investment than Fundamental Invest. However, Shape Robotics is 8.05 times more volatile than Fundamental Invest Stock. It trades about 0.15 of its potential returns per unit of risk. Fundamental Invest Stock is currently generating about -0.05 per unit of risk. If you would invest 1,745 in Shape Robotics AS on September 1, 2024 and sell it today you would earn a total of 425.00 from holding Shape Robotics AS or generate 24.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shape Robotics AS vs. Fundamental Invest Stock
Performance |
| Timeline |
| Shape Robotics AS |
| Fundamental Invest Stock |
Shape Robotics and Fundamental Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shape Robotics and Fundamental Invest
The main advantage of trading using opposite Shape Robotics and Fundamental Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shape Robotics position performs unexpectedly, Fundamental Invest 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 Fundamental Invest will offset losses from the drop in Fundamental Invest's long position.| Shape Robotics vs. FOM Technologies AS | Shape Robotics vs. Penneo AS | Shape Robotics vs. cBrain AS | Shape Robotics vs. Green Hydrogen Systems |
| Fundamental Invest vs. Novo Nordisk AS | Fundamental Invest vs. Nordea Bank Abp | Fundamental Invest vs. DSV Panalpina AS | Fundamental Invest vs. AP Mller |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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