Correlation Between BOS Better and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both BOS Better and ReWalk 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 BOS Better and ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS Better Online and ReWalk Robotics, you can compare the effects of market volatilities on BOS Better and ReWalk 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 BOS Better with a short position of ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and ReWalk Robotics.
Diversification Opportunities for BOS Better and ReWalk Robotics
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and ReWalk is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics and BOS Better 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 BOS Better Online are associated (or correlated) with ReWalk Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReWalk Robotics has no effect on the direction of BOS Better i.e., BOS Better and ReWalk Robotics go up and down completely randomly.
Pair Corralation between BOS Better and ReWalk Robotics
Given the investment horizon of 90 days BOS Better Online is expected to generate 0.32 times more return on investment than ReWalk Robotics. However, BOS Better Online is 3.15 times less risky than ReWalk Robotics. It trades about -0.04 of its potential returns per unit of risk. ReWalk Robotics is currently generating about -0.23 per unit of risk. If you would invest 331.00 in BOS Better Online on September 22, 2024 and sell it today you would lose (4.00) from holding BOS Better Online or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS Better Online vs. ReWalk Robotics
Performance |
| Timeline |
| BOS Better Online |
| ReWalk Robotics |
BOS Better and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS Better and ReWalk Robotics
The main advantage of trading using opposite BOS Better and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, ReWalk 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 ReWalk Robotics will offset losses from the drop in ReWalk Robotics' long position.| BOS Better vs. Mynaric AG ADR | BOS Better vs. Knowles Cor | BOS Better vs. Comtech Telecommunications Corp | BOS Better vs. Ituran Location and |
| ReWalk Robotics vs. Westinghouse Air Brake | ReWalk Robotics vs. Corporacion America Airports | ReWalk Robotics vs. BOS Better Online | ReWalk Robotics vs. Alaska Air Group |
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.
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