Correlation Between Ekso Bionics and Owlet
Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and Owlet 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 Owlet 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 Owlet Inc, you can compare the effects of market volatilities on Ekso Bionics and Owlet 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 Owlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and Owlet.
Diversification Opportunities for Ekso Bionics and Owlet
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekso and Owlet is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and Owlet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owlet 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 Owlet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Owlet Inc has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and Owlet go up and down completely randomly.
Pair Corralation between Ekso Bionics and Owlet
Given the investment horizon of 90 days Ekso Bionics Holdings is expected to under-perform the Owlet. In addition to that, Ekso Bionics is 1.45 times more volatile than Owlet Inc. It trades about -0.01 of its total potential returns per unit of risk. Owlet Inc is currently generating about 0.02 per unit of volatility. If you would invest 508.00 in Owlet Inc on September 2, 2024 and sell it today you would lose (22.00) from holding Owlet Inc or give up 4.33% 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. Owlet Inc
Performance |
| Timeline |
| Ekso Bionics Holdings |
| Owlet Inc |
Ekso Bionics and Owlet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekso Bionics and Owlet
The main advantage of trading using opposite Ekso Bionics and Owlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekso Bionics position performs unexpectedly, Owlet 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 Owlet will offset losses from the drop in Owlet'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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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