Correlation Between Integer Holdings and Ekso Bionics
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Ekso Bionics 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 Integer Holdings and Ekso Bionics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integer Holdings Corp and Ekso Bionics Holdings, you can compare the effects of market volatilities on Integer Holdings and Ekso Bionics 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 Integer Holdings with a short position of Ekso Bionics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Ekso Bionics.
Diversification Opportunities for Integer Holdings and Ekso Bionics
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Integer and Ekso is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Ekso Bionics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekso Bionics Holdings and Integer Holdings 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 Integer Holdings Corp are associated (or correlated) with Ekso Bionics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekso Bionics Holdings has no effect on the direction of Integer Holdings i.e., Integer Holdings and Ekso Bionics go up and down completely randomly.
Pair Corralation between Integer Holdings and Ekso Bionics
Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 0.46 times more return on investment than Ekso Bionics. However, Integer Holdings Corp is 2.19 times less risky than Ekso Bionics. It trades about 0.2 of its potential returns per unit of risk. Ekso Bionics Holdings is currently generating about -0.53 per unit of risk. If you would invest 12,793 in Integer Holdings Corp on August 28, 2024 and sell it today you would earn a total of 1,085 from holding Integer Holdings Corp or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integer Holdings Corp vs. Ekso Bionics Holdings
Performance |
| Timeline |
| Integer Holdings Corp |
| Ekso Bionics Holdings |
Integer Holdings and Ekso Bionics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and Ekso Bionics
The main advantage of trading using opposite Integer Holdings and Ekso Bionics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Ekso Bionics 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 Ekso Bionics will offset losses from the drop in Ekso Bionics' long position.The idea behind Integer Holdings Corp and Ekso Bionics Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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