Correlation Between ReWalk Robotics and Westinghouse Air
Can any of the company-specific risk be diversified away by investing in both ReWalk Robotics and Westinghouse Air 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 Westinghouse Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReWalk Robotics and Westinghouse Air Brake, you can compare the effects of market volatilities on ReWalk Robotics and Westinghouse Air 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 Westinghouse Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReWalk Robotics and Westinghouse Air.
Diversification Opportunities for ReWalk Robotics and Westinghouse Air
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ReWalk and Westinghouse is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding ReWalk Robotics and Westinghouse Air Brake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westinghouse Air Brake 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 Westinghouse Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westinghouse Air Brake has no effect on the direction of ReWalk Robotics i.e., ReWalk Robotics and Westinghouse Air go up and down completely randomly.
Pair Corralation between ReWalk Robotics and Westinghouse Air
Given the investment horizon of 90 days ReWalk Robotics is expected to under-perform the Westinghouse Air. In addition to that, ReWalk Robotics is 3.19 times more volatile than Westinghouse Air Brake. It trades about -0.23 of its total potential returns per unit of risk. Westinghouse Air Brake is currently generating about -0.09 per unit of volatility. If you would invest 19,803 in Westinghouse Air Brake on September 22, 2024 and sell it today you would lose (500.00) from holding Westinghouse Air Brake or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ReWalk Robotics vs. Westinghouse Air Brake
Performance |
| Timeline |
| ReWalk Robotics |
| Westinghouse Air Brake |
ReWalk Robotics and Westinghouse Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReWalk Robotics and Westinghouse Air
The main advantage of trading using opposite ReWalk Robotics and Westinghouse Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReWalk Robotics position performs unexpectedly, Westinghouse Air 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 Westinghouse Air will offset losses from the drop in Westinghouse Air's long position.| ReWalk Robotics vs. Westinghouse Air Brake | ReWalk Robotics vs. Corporacion America Airports | ReWalk Robotics vs. BOS Better Online | ReWalk Robotics vs. Alaska Air Group |
| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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