Correlation Between Shape Robotics and Impero AS
Can any of the company-specific risk be diversified away by investing in both Shape Robotics and Impero AS 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 Impero AS 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 Impero AS, you can compare the effects of market volatilities on Shape Robotics and Impero AS 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 Impero AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shape Robotics and Impero AS.
Diversification Opportunities for Shape Robotics and Impero AS
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shape and Impero is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shape Robotics AS and Impero AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impero AS 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 Impero AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impero AS has no effect on the direction of Shape Robotics i.e., Shape Robotics and Impero AS go up and down completely randomly.
Pair Corralation between Shape Robotics and Impero AS
Assuming the 90 days trading horizon Shape Robotics AS is expected to generate 1.08 times more return on investment than Impero AS. However, Shape Robotics is 1.08 times more volatile than Impero AS. It trades about 0.15 of its potential returns per unit of risk. Impero AS is currently generating about 0.07 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 | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shape Robotics AS vs. Impero AS
Performance |
| Timeline |
| Shape Robotics AS |
| Impero AS |
Shape Robotics and Impero AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shape Robotics and Impero AS
The main advantage of trading using opposite Shape Robotics and Impero AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shape Robotics position performs unexpectedly, Impero AS 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 Impero AS will offset losses from the drop in Impero AS'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 |
| Impero AS vs. Penneo AS | Impero AS vs. Hydract AS | Impero AS vs. Shape Robotics AS | Impero AS vs. Dataproces Group 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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