Correlation Between HealthEquity and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both HealthEquity 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 HealthEquity and ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthEquity and ReWalk Robotics, you can compare the effects of market volatilities on HealthEquity 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 HealthEquity with a short position of ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthEquity and ReWalk Robotics.
Diversification Opportunities for HealthEquity and ReWalk Robotics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HealthEquity and ReWalk is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding HealthEquity and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics and HealthEquity 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 HealthEquity 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 HealthEquity i.e., HealthEquity and ReWalk Robotics go up and down completely randomly.
Pair Corralation between HealthEquity and ReWalk Robotics
Considering the 90-day investment horizon HealthEquity is expected to generate 0.1 times more return on investment than ReWalk Robotics. However, HealthEquity is 9.87 times less risky than ReWalk Robotics. It trades about 0.4 of its potential returns per unit of risk. ReWalk Robotics is currently generating about 0.01 per unit of risk. If you would invest 9,684 in HealthEquity on October 29, 2024 and sell it today you would earn a total of 1,004 from holding HealthEquity or generate 10.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HealthEquity vs. ReWalk Robotics
Performance |
| Timeline |
| HealthEquity |
| ReWalk Robotics |
HealthEquity and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthEquity and ReWalk Robotics
The main advantage of trading using opposite HealthEquity and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthEquity 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.| HealthEquity vs. Ollies Bargain Outlet | HealthEquity vs. Appfolio | HealthEquity vs. Grand Canyon Education | HealthEquity vs. Globus Medical |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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