Correlation Between ReWalk Robotics and Dow Jones
Can any of the company-specific risk be diversified away by investing in both ReWalk Robotics and Dow Jones 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 ReWalk Robotics and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReWalk Robotics and Dow Jones Industrial, you can compare the effects of market volatilities on ReWalk Robotics and Dow Jones 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 ReWalk Robotics with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReWalk Robotics and Dow Jones.
Diversification Opportunities for ReWalk Robotics and Dow Jones
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ReWalk and Dow is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding ReWalk Robotics and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and ReWalk Robotics 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 ReWalk Robotics are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of ReWalk Robotics i.e., ReWalk Robotics and Dow Jones go up and down completely randomly.
Pair Corralation between ReWalk Robotics and Dow Jones
Given the investment horizon of 90 days ReWalk Robotics is expected to generate 2.64 times less return on investment than Dow Jones. In addition to that, ReWalk Robotics is 17.42 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.32 per unit of volatility. If you would invest 4,257,373 in Dow Jones Industrial on October 29, 2024 and sell it today you would earn a total of 185,052 from holding Dow Jones Industrial or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
ReWalk Robotics vs. Dow Jones Industrial
Performance |
| Timeline |
ReWalk Robotics and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ReWalk Robotics
Pair trading matchups for ReWalk Robotics
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ReWalk Robotics and Dow Jones
The main advantage of trading using opposite ReWalk Robotics and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReWalk Robotics position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| ReWalk Robotics vs. NorthWestern | ReWalk Robotics vs. Starwin Media Holdings | ReWalk Robotics vs. Glorywin Entertainment Group | ReWalk Robotics vs. National CineMedia |
| Dow Jones vs. Lion One Metals | Dow Jones vs. PennantPark Floating Rate | Dow Jones vs. TFI International | Dow Jones vs. United Guardian |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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