Correlation Between Ekso Bionics and Patterson Companies
Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and Patterson Companies 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 Patterson Companies 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 Patterson Companies, you can compare the effects of market volatilities on Ekso Bionics and Patterson Companies 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 Patterson Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and Patterson Companies.
Diversification Opportunities for Ekso Bionics and Patterson Companies
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ekso and Patterson is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and Patterson Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson Companies 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 Patterson Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson Companies has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and Patterson Companies go up and down completely randomly.
Pair Corralation between Ekso Bionics and Patterson Companies
Given the investment horizon of 90 days Ekso Bionics is expected to generate 2.26 times less return on investment than Patterson Companies. But when comparing it to its historical volatility, Ekso Bionics Holdings is 1.02 times less risky than Patterson Companies. It trades about 0.1 of its potential returns per unit of risk. Patterson Companies is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,300 in Patterson Companies on October 9, 2024 and sell it today you would earn a total of 790.00 from holding Patterson Companies or generate 34.35% 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. Patterson Companies
Performance |
| Timeline |
| Ekso Bionics Holdings |
| Patterson Companies |
Ekso Bionics and Patterson Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekso Bionics and Patterson Companies
The main advantage of trading using opposite Ekso Bionics and Patterson Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekso Bionics position performs unexpectedly, Patterson Companies 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 Patterson Companies will offset losses from the drop in Patterson Companies' long position.| Ekso Bionics vs. Pro Dex | Ekso Bionics vs. Coloplast A | Ekso Bionics vs. Straumann Holding AG | Ekso Bionics vs. Nephros |
| Patterson Companies vs. Owens Minor | Patterson Companies vs. Cardinal Health | Patterson Companies vs. McKesson | Patterson Companies vs. Henry Schein |
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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