Correlation Between Coloplast and Ekso Bionics
Can any of the company-specific risk be diversified away by investing in both Coloplast and Ekso Bionics 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 Coloplast and Ekso Bionics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coloplast A and Ekso Bionics Holdings, you can compare the effects of market volatilities on Coloplast and Ekso Bionics 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 Coloplast with a short position of Ekso Bionics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloplast and Ekso Bionics.
Diversification Opportunities for Coloplast and Ekso Bionics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coloplast and Ekso is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast A and Ekso Bionics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekso Bionics Holdings and Coloplast 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 Coloplast A are associated (or correlated) with Ekso Bionics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekso Bionics Holdings has no effect on the direction of Coloplast i.e., Coloplast and Ekso Bionics go up and down completely randomly.
Pair Corralation between Coloplast and Ekso Bionics
Assuming the 90 days horizon Coloplast is expected to generate 2.0 times less return on investment than Ekso Bionics. But when comparing it to its historical volatility, Coloplast A is 3.71 times less risky than Ekso Bionics. It trades about 0.02 of its potential returns per unit of risk. Ekso Bionics Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 127.00 in Ekso Bionics Holdings on August 28, 2024 and sell it today you would lose (58.00) from holding Ekso Bionics Holdings or give up 45.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coloplast A vs. Ekso Bionics Holdings
Performance |
| Timeline |
| Coloplast A |
| Ekso Bionics Holdings |
Coloplast and Ekso Bionics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloplast and Ekso Bionics
The main advantage of trading using opposite Coloplast and Ekso Bionics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloplast position performs unexpectedly, Ekso Bionics 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 Ekso Bionics will offset losses from the drop in Ekso Bionics' long position.| Coloplast vs. Straumann Holding AG | Coloplast vs. Hoya Corp | Coloplast vs. EssilorLuxottica Socit anonyme | Coloplast vs. Essilor International SA |
| Ekso Bionics vs. Pro Dex | Ekso Bionics vs. Coloplast A | Ekso Bionics vs. Straumann Holding AG | Ekso Bionics vs. Nephros |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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