Correlation Between Celestica and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both Celestica 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 Celestica and ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and ReWalk Robotics, you can compare the effects of market volatilities on Celestica 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 Celestica with a short position of ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and ReWalk Robotics.
Diversification Opportunities for Celestica and ReWalk Robotics
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celestica and ReWalk is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics and Celestica 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 Celestica 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 Celestica i.e., Celestica and ReWalk Robotics go up and down completely randomly.
Pair Corralation between Celestica and ReWalk Robotics
Considering the 90-day investment horizon Celestica is expected to generate 5.87 times less return on investment than ReWalk Robotics. But when comparing it to its historical volatility, Celestica is 5.32 times less risky than ReWalk Robotics. It trades about 0.12 of its potential returns per unit of risk. ReWalk Robotics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 163.00 in ReWalk Robotics on October 15, 2024 and sell it today you would earn a total of 27.00 from holding ReWalk Robotics or generate 16.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celestica vs. ReWalk Robotics
Performance |
| Timeline |
| Celestica |
| ReWalk Robotics |
Celestica and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and ReWalk Robotics
The main advantage of trading using opposite Celestica and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica 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.| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
| ReWalk Robotics vs. Hollywood Intermediate | ReWalk Robotics vs. Mattel Inc | ReWalk Robotics vs. Glorywin Entertainment Group | ReWalk Robotics vs. Genfit |
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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