Correlation Between Shape Robotics and Conferize

Can any of the company-specific risk be diversified away by investing in both Shape Robotics and Conferize 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 Conferize 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 Conferize AS, you can compare the effects of market volatilities on Shape Robotics and Conferize 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 Conferize. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shape Robotics and Conferize.

Diversification Opportunities for Shape Robotics and Conferize

-0.12

Correlation Coefficient

Shape Robotics  Conferize

Good diversification

The 3 months correlation between Shape and Conferize is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shape Robotics AS and Conferize AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conferize 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 Conferize. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conferize AS has no effect on the direction of Shape Robotics i.e., Shape Robotics and Conferize go up and down completely randomly.

Pair Corralation between Shape Robotics and Conferize

Assuming the 90 days trading horizon Shape Robotics AS is expected to generate 0.83 times more return on investment than Conferize. However, Shape Robotics AS is 1.2 times less risky than Conferize. It trades about 0.1 of its potential returns per unit of risk. Conferize AS is currently generating about -0.03 per unit of risk. If you would invest  1,625  in Shape Robotics AS on October 6, 2024 and sell it today you would earn a total of  350.00  from holding Shape Robotics AS or generate 21.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Shape Robotics AS  vs.  Conferize AS

Shape Robotics AS

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Shape Robotics AS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Shape Robotics exhibited solid returns over the last few months and may actually be approaching a breakup point.

Conferize AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Conferize AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Shape Robotics and Conferize

The main advantage of trading using opposite Shape Robotics and Conferize positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shape Robotics position performs unexpectedly, Conferize 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 Conferize will offset losses from the drop in Conferize's long position.

The idea behind Shape Robotics AS and Conferize 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.