Correlation Between ReWalk Robotics and Lipocine
Can any of the company-specific risk be diversified away by investing in both ReWalk Robotics and Lipocine 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 Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReWalk Robotics and Lipocine, you can compare the effects of market volatilities on ReWalk Robotics and Lipocine 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 Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReWalk Robotics and Lipocine.
Diversification Opportunities for ReWalk Robotics and Lipocine
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ReWalk and Lipocine is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ReWalk Robotics and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine 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 Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of ReWalk Robotics i.e., ReWalk Robotics and Lipocine go up and down completely randomly.
Pair Corralation between ReWalk Robotics and Lipocine
Given the investment horizon of 90 days ReWalk Robotics is expected to under-perform the Lipocine. But the stock apears to be less risky and, when comparing its historical volatility, ReWalk Robotics is 1.33 times less risky than Lipocine. The stock trades about -0.42 of its potential returns per unit of risk. The Lipocine is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 501.00 in Lipocine on September 25, 2024 and sell it today you would lose (11.00) from holding Lipocine or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ReWalk Robotics vs. Lipocine
Performance |
| Timeline |
| ReWalk Robotics |
| Lipocine |
ReWalk Robotics and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReWalk Robotics and Lipocine
The main advantage of trading using opposite ReWalk Robotics and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReWalk Robotics position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine's long position.| ReWalk Robotics vs. Lipocine | ReWalk Robotics vs. Mink Therapeutics | ReWalk Robotics vs. Sellas Life Sciences | ReWalk Robotics vs. Univest Pennsylvania |
| Lipocine vs. Oric Pharmaceuticals | Lipocine vs. Lyra Therapeutics | Lipocine vs. Inhibrx | Lipocine vs. ESSA Pharma |
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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