Correlation Between GlucoTrack and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both GlucoTrack 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 GlucoTrack and ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlucoTrack and ReWalk Robotics, you can compare the effects of market volatilities on GlucoTrack 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 GlucoTrack with a short position of ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlucoTrack and ReWalk Robotics.
Diversification Opportunities for GlucoTrack and ReWalk Robotics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GlucoTrack and ReWalk is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding GlucoTrack and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics and GlucoTrack 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 GlucoTrack 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 GlucoTrack i.e., GlucoTrack and ReWalk Robotics go up and down completely randomly.
Pair Corralation between GlucoTrack and ReWalk Robotics
Given the investment horizon of 90 days GlucoTrack is expected to under-perform the ReWalk Robotics. In addition to that, GlucoTrack is 1.68 times more volatile than ReWalk Robotics. It trades about -0.16 of its total potential returns per unit of risk. ReWalk Robotics is currently generating about 0.01 per unit of volatility. If you would invest 186.00 in ReWalk Robotics on October 29, 2024 and sell it today you would lose (24.00) from holding ReWalk Robotics or give up 12.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlucoTrack vs. ReWalk Robotics
Performance |
| Timeline |
| GlucoTrack |
| ReWalk Robotics |
GlucoTrack and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlucoTrack and ReWalk Robotics
The main advantage of trading using opposite GlucoTrack and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlucoTrack 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.| GlucoTrack vs. Nexgel Inc | GlucoTrack vs. Avinger | GlucoTrack vs. Sharps Technology | GlucoTrack vs. Innovative Eyewear |
| ReWalk Robotics vs. NorthWestern | ReWalk Robotics vs. Starwin Media Holdings | ReWalk Robotics vs. Glorywin Entertainment Group | ReWalk Robotics vs. National CineMedia |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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