Correlation Between Ekso Bionics and LifeMD
Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and LifeMD 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 LifeMD 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 LifeMD Inc, you can compare the effects of market volatilities on Ekso Bionics and LifeMD 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 LifeMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and LifeMD.
Diversification Opportunities for Ekso Bionics and LifeMD
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekso and LifeMD is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and LifeMD Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeMD 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 LifeMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeMD Inc has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and LifeMD go up and down completely randomly.
Pair Corralation between Ekso Bionics and LifeMD
Given the investment horizon of 90 days Ekso Bionics Holdings is expected to under-perform the LifeMD. But the stock apears to be less risky and, when comparing its historical volatility, Ekso Bionics Holdings is 1.01 times less risky than LifeMD. The stock trades about -0.05 of its potential returns per unit of risk. The LifeMD Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 753.00 in LifeMD Inc on September 2, 2024 and sell it today you would lose (94.00) from holding LifeMD Inc or give up 12.48% 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. LifeMD Inc
Performance |
| Timeline |
| Ekso Bionics Holdings |
| LifeMD Inc |
Ekso Bionics and LifeMD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekso Bionics and LifeMD
The main advantage of trading using opposite Ekso Bionics and LifeMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekso Bionics position performs unexpectedly, LifeMD 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 LifeMD will offset losses from the drop in LifeMD's long position.| Ekso Bionics vs. Pro Dex | Ekso Bionics vs. Coloplast A | Ekso Bionics vs. Straumann Holding AG | Ekso Bionics vs. Nephros |
| LifeMD vs. Streamline Health Solutions | LifeMD vs. HealthStream | LifeMD vs. National Research Corp | LifeMD vs. Privia Health 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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