Correlation Between Electromedical Technologies and Rewalk Robotics
Can any of the company-specific risk be diversified away by investing in both Electromedical Technologies and Rewalk Robotics 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 Electromedical Technologies and Rewalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electromedical Technologies and Rewalk Robotics, you can compare the effects of market volatilities on Electromedical Technologies and Rewalk Robotics 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 Electromedical Technologies with a short position of Rewalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electromedical Technologies and Rewalk Robotics.
Diversification Opportunities for Electromedical Technologies and Rewalk Robotics
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Electromedical and Rewalk is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Electromedical Technologies and Rewalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rewalk Robotics and Electromedical Technologies 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 Electromedical Technologies are associated (or correlated) with Rewalk Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rewalk Robotics has no effect on the direction of Electromedical Technologies i.e., Electromedical Technologies and Rewalk Robotics go up and down completely randomly.
Pair Corralation between Electromedical Technologies and Rewalk Robotics
If you would invest 0.10 in Electromedical Technologies on September 20, 2024 and sell it today you would lose (0.07) from holding Electromedical Technologies or give up 70.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Electromedical Technologies vs. Rewalk Robotics
Performance |
| Timeline |
| Electromedical Technologies |
| Rewalk Robotics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Electromedical Technologies and Rewalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electromedical Technologies and Rewalk Robotics
The main advantage of trading using opposite Electromedical Technologies and Rewalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electromedical Technologies position performs unexpectedly, Rewalk Robotics 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 Rewalk Robotics will offset losses from the drop in Rewalk Robotics' long position.| Electromedical Technologies vs. Abbott Laboratories | Electromedical Technologies vs. Stryker | Electromedical Technologies vs. Boston Scientific Corp | Electromedical Technologies vs. Medtronic PLC |
| Rewalk Robotics vs. Inspira Technologies Oxy | Rewalk Robotics vs. Heart Test Laboratories | Rewalk Robotics vs. NanoVibronix | Rewalk Robotics vs. Rapid Micro Biosystems |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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