Correlation Between Evolent Health and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both Evolent Health 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 Evolent Health and ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and ReWalk Robotics, you can compare the effects of market volatilities on Evolent Health 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 Evolent Health with a short position of ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and ReWalk Robotics.
Diversification Opportunities for Evolent Health and ReWalk Robotics
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evolent and ReWalk is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics and Evolent Health 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 Evolent Health 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 Evolent Health i.e., Evolent Health and ReWalk Robotics go up and down completely randomly.
Pair Corralation between Evolent Health and ReWalk Robotics
Considering the 90-day investment horizon Evolent Health is expected to under-perform the ReWalk Robotics. But the stock apears to be less risky and, when comparing its historical volatility, Evolent Health is 1.23 times less risky than ReWalk Robotics. The stock trades about -0.15 of its potential returns per unit of risk. The ReWalk Robotics is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 212.00 in ReWalk Robotics on November 6, 2024 and sell it today you would lose (73.00) from holding ReWalk Robotics or give up 34.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. ReWalk Robotics
Performance |
| Timeline |
| Evolent Health |
| ReWalk Robotics |
Evolent Health and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and ReWalk Robotics
The main advantage of trading using opposite Evolent Health and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health 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.| Evolent Health vs. CareMax | Evolent Health vs. Certara | Evolent Health vs. Definitive Healthcare Corp | Evolent Health vs. National Research Corp |
| ReWalk Robotics vs. Everspin Technologies | ReWalk Robotics vs. Vishay Precision Group | ReWalk Robotics vs. Sonos Inc | ReWalk Robotics vs. Garmin |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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