Correlation Between Ekso Bionics and Icad
Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and Icad 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 Ekso Bionics and Icad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekso Bionics Holdings and icad inc, you can compare the effects of market volatilities on Ekso Bionics and Icad 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 Ekso Bionics with a short position of Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and Icad.
Diversification Opportunities for Ekso Bionics and Icad
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekso and Icad is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and Ekso Bionics 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 Ekso Bionics Holdings are associated (or correlated) with Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and Icad go up and down completely randomly.
Pair Corralation between Ekso Bionics and Icad
Given the investment horizon of 90 days Ekso Bionics Holdings is expected to under-perform the Icad. But the stock apears to be less risky and, when comparing its historical volatility, Ekso Bionics Holdings is 1.53 times less risky than Icad. The stock trades about -0.3 of its potential returns per unit of risk. The icad inc is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 175.00 in icad inc on August 24, 2024 and sell it today you would lose (21.00) from holding icad inc or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekso Bionics Holdings vs. icad inc
Performance |
| Timeline |
| Ekso Bionics Holdings |
| icad inc |
Ekso Bionics and Icad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekso Bionics and Icad
The main advantage of trading using opposite Ekso Bionics and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekso Bionics position performs unexpectedly, Icad 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 Icad will offset losses from the drop in Icad's long position.| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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