Correlation Between Ekso Bionics and Select Medical
Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and Select Medical 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 Select Medical 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 Select Medical Holdings, you can compare the effects of market volatilities on Ekso Bionics and Select Medical 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 Select Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and Select Medical.
Diversification Opportunities for Ekso Bionics and Select Medical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ekso and Select is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and Select Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Medical Holdings 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 Select Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Medical Holdings has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and Select Medical go up and down completely randomly.
Pair Corralation between Ekso Bionics and Select Medical
Given the investment horizon of 90 days Ekso Bionics Holdings is expected to under-perform the Select Medical. In addition to that, Ekso Bionics is 1.52 times more volatile than Select Medical Holdings. It trades about -0.3 of its total potential returns per unit of risk. Select Medical Holdings is currently generating about 0.26 per unit of volatility. If you would invest 3,263 in Select Medical Holdings on August 24, 2024 and sell it today you would earn a total of 644.00 from holding Select Medical Holdings or generate 19.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekso Bionics Holdings vs. Select Medical Holdings
Performance |
| Timeline |
| Ekso Bionics Holdings |
| Select Medical Holdings |
Ekso Bionics and Select Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekso Bionics and Select Medical
The main advantage of trading using opposite Ekso Bionics and Select Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekso Bionics position performs unexpectedly, Select Medical 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 Select Medical will offset losses from the drop in Select Medical's long position.| Ekso Bionics vs. Pro Dex | Ekso Bionics vs. Coloplast A | Ekso Bionics vs. Straumann Holding AG | Ekso Bionics vs. Nephros |
| Select Medical vs. The Ensign Group | Select Medical vs. Encompass Health Corp | Select Medical vs. InnovAge Holding Corp | Select Medical vs. Enhabit |
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 Stocks Directory module to find actively traded stocks across global markets.
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