Correlation Between Shape Robotics and Penneo AS
Can any of the company-specific risk be diversified away by investing in both Shape Robotics and Penneo 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 Penneo 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 Penneo AS, you can compare the effects of market volatilities on Shape Robotics and Penneo 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 Penneo AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shape Robotics and Penneo AS.
Diversification Opportunities for Shape Robotics and Penneo AS
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shape and Penneo is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shape Robotics AS and Penneo AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penneo 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 Penneo AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penneo AS has no effect on the direction of Shape Robotics i.e., Shape Robotics and Penneo AS go up and down completely randomly.
Pair Corralation between Shape Robotics and Penneo AS
Assuming the 90 days trading horizon Shape Robotics AS is expected to generate 4.04 times more return on investment than Penneo AS. However, Shape Robotics is 4.04 times more volatile than Penneo AS. It trades about 0.1 of its potential returns per unit of risk. Penneo AS is currently generating about -0.04 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shape Robotics AS vs. Penneo AS
Performance |
| Timeline |
| Shape Robotics AS |
| Penneo AS |
Shape Robotics and Penneo AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shape Robotics and Penneo AS
The main advantage of trading using opposite Shape Robotics and Penneo AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shape Robotics position performs unexpectedly, Penneo 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 Penneo AS will offset losses from the drop in Penneo AS's long position.The idea behind Shape Robotics AS and Penneo 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.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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |