Correlation Between TOBA Investments and Shape Robotics

Can any of the company-specific risk be diversified away by investing in both TOBA Investments and Shape Robotics 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 TOBA Investments and Shape Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TOBA Investments Bonds and Shape Robotics AS, you can compare the effects of market volatilities on TOBA Investments and Shape Robotics 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 TOBA Investments with a short position of Shape Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOBA Investments and Shape Robotics.

Diversification Opportunities for TOBA Investments and Shape Robotics

-0.47

Correlation Coefficient

TOBA Investments  Shape Robotics

Very good diversification

The 3 months correlation between TOBA and Shape is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding TOBA Investments Bonds and Shape Robotics AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shape Robotics AS and TOBA Investments 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 TOBA Investments Bonds are associated (or correlated) with Shape Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shape Robotics AS has no effect on the direction of TOBA Investments i.e., TOBA Investments and Shape Robotics go up and down completely randomly.

Pair Corralation between TOBA Investments and Shape Robotics

Assuming the 90 days trading horizon TOBA Investments is expected to generate 21.01 times less return on investment than Shape Robotics. But when comparing it to its historical volatility, TOBA Investments Bonds is 35.45 times less risky than Shape Robotics. It trades about 0.23 of its potential returns per unit of risk. Shape Robotics AS is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  936.00  in Shape Robotics AS on April 25, 2025 and sell it today you would earn a total of  544.00  from holding Shape Robotics AS or generate 58.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	38.33%
Values	Daily Returns

TOBA Investments Bonds  vs.  Shape Robotics AS

TOBA Investments Bonds

Risk-Adjusted Performance

Solid

Over the last 90 days TOBA Investments Bonds has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, TOBA Investments is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Shape Robotics AS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shape Robotics AS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Shape Robotics exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TOBA Investments and Shape Robotics

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

The idea behind TOBA Investments Bonds and Shape Robotics 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.