Correlation Between Shape Robotics and Gabriel Holding
Can any of the company-specific risk be diversified away by investing in both Shape Robotics and Gabriel Holding 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 Gabriel Holding 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 Gabriel Holding, you can compare the effects of market volatilities on Shape Robotics and Gabriel Holding 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 Gabriel Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shape Robotics and Gabriel Holding.
Diversification Opportunities for Shape Robotics and Gabriel Holding
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shape and Gabriel is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shape Robotics AS and Gabriel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabriel Holding 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 Gabriel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabriel Holding has no effect on the direction of Shape Robotics i.e., Shape Robotics and Gabriel Holding go up and down completely randomly.
Pair Corralation between Shape Robotics and Gabriel Holding
Assuming the 90 days trading horizon Shape Robotics AS is expected to under-perform the Gabriel Holding. In addition to that, Shape Robotics is 1.61 times more volatile than Gabriel Holding. It trades about -0.05 of its total potential returns per unit of risk. Gabriel Holding is currently generating about -0.04 per unit of volatility. If you would invest 25,200 in Gabriel Holding on September 3, 2024 and sell it today you would lose (5,200) from holding Gabriel Holding or give up 20.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shape Robotics AS vs. Gabriel Holding
Performance |
| Timeline |
| Shape Robotics AS |
| Gabriel Holding |
Shape Robotics and Gabriel Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shape Robotics and Gabriel Holding
The main advantage of trading using opposite Shape Robotics and Gabriel Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shape Robotics position performs unexpectedly, Gabriel Holding 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 Gabriel Holding will offset losses from the drop in Gabriel Holding's long position.| Shape Robotics vs. cBrain AS | Shape Robotics vs. FOM Technologies AS | Shape Robotics vs. ChemoMetec AS | Shape Robotics vs. BioPorto |
| Gabriel Holding vs. SP Group AS | Gabriel Holding vs. Columbus AS | Gabriel Holding vs. Schouw Co | Gabriel Holding vs. RTX 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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