Correlation Between Shape Robotics and Orsted AS
Can any of the company-specific risk be diversified away by investing in both Shape Robotics and Orsted 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 Orsted 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 Orsted AS, you can compare the effects of market volatilities on Shape Robotics and Orsted 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 Orsted AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shape Robotics and Orsted AS.
Diversification Opportunities for Shape Robotics and Orsted AS
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shape and Orsted is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shape Robotics AS and Orsted AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orsted 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 Orsted AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orsted AS has no effect on the direction of Shape Robotics i.e., Shape Robotics and Orsted AS go up and down completely randomly.
Pair Corralation between Shape Robotics and Orsted AS
Assuming the 90 days trading horizon Shape Robotics is expected to generate 4.78 times less return on investment than Orsted AS. In addition to that, Shape Robotics is 1.18 times more volatile than Orsted AS. It trades about 0.07 of its total potential returns per unit of risk. Orsted AS is currently generating about 0.4 per unit of volatility. If you would invest 26,440 in Orsted AS on November 27, 2024 and sell it today you would earn a total of 4,970 from holding Orsted AS or generate 18.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shape Robotics AS vs. Orsted AS
Performance |
| Timeline |
| Shape Robotics AS |
| Orsted AS |
Shape Robotics and Orsted AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shape Robotics and Orsted AS
The main advantage of trading using opposite Shape Robotics and Orsted AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shape Robotics position performs unexpectedly, Orsted 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 Orsted AS will offset losses from the drop in Orsted 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 |
| Orsted AS vs. Embla Medical hf | Orsted AS vs. BankInv Kort HY | Orsted AS vs. Prime Office AS | Orsted AS vs. Hvidbjerg Bank |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |