Correlation Between Ekso Bionics and Myomo
Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and Myomo 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 Myomo 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 Myomo Inc, you can compare the effects of market volatilities on Ekso Bionics and Myomo 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 Myomo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and Myomo.
Diversification Opportunities for Ekso Bionics and Myomo
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ekso and Myomo is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and Myomo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myomo 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 Myomo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myomo Inc has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and Myomo go up and down completely randomly.
Pair Corralation between Ekso Bionics and Myomo
Given the investment horizon of 90 days Ekso Bionics is expected to generate 21.2 times less return on investment than Myomo. But when comparing it to its historical volatility, Ekso Bionics Holdings is 1.08 times less risky than Myomo. It trades about 0.01 of its potential returns per unit of risk. Myomo Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 55.00 in Myomo Inc on September 2, 2024 and sell it today you would earn a total of 507.00 from holding Myomo Inc or generate 921.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekso Bionics Holdings vs. Myomo Inc
Performance |
| Timeline |
| Ekso Bionics Holdings |
| Myomo Inc |
Ekso Bionics and Myomo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekso Bionics and Myomo
The main advantage of trading using opposite Ekso Bionics and Myomo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekso Bionics position performs unexpectedly, Myomo 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 Myomo will offset losses from the drop in Myomo's long position.| Ekso Bionics vs. Pro Dex | Ekso Bionics vs. Coloplast A | Ekso Bionics vs. Straumann Holding AG | Ekso Bionics vs. Nephros |
| Myomo vs. SINTX Technologies | Myomo vs. ReShape Lifesciences | Myomo vs. Bone Biologics Corp | Myomo vs. Tivic Health Systems |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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