Correlation Between ReWalk Robotics and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both ReWalk Robotics and Xponential Fitness 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 Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReWalk Robotics and Xponential Fitness, you can compare the effects of market volatilities on ReWalk Robotics and Xponential Fitness 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 Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReWalk Robotics and Xponential Fitness.
Diversification Opportunities for ReWalk Robotics and Xponential Fitness
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ReWalk and Xponential is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding ReWalk Robotics and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness 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 Xponential Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xponential Fitness has no effect on the direction of ReWalk Robotics i.e., ReWalk Robotics and Xponential Fitness go up and down completely randomly.
Pair Corralation between ReWalk Robotics and Xponential Fitness
Given the investment horizon of 90 days ReWalk Robotics is expected to under-perform the Xponential Fitness. In addition to that, ReWalk Robotics is 1.18 times more volatile than Xponential Fitness. It trades about -0.23 of its total potential returns per unit of risk. Xponential Fitness is currently generating about -0.03 per unit of volatility. If you would invest 1,437 in Xponential Fitness on September 22, 2024 and sell it today you would lose (54.00) from holding Xponential Fitness or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ReWalk Robotics vs. Xponential Fitness
Performance |
| Timeline |
| ReWalk Robotics |
| Xponential Fitness |
ReWalk Robotics and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReWalk Robotics and Xponential Fitness
The main advantage of trading using opposite ReWalk Robotics and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReWalk Robotics position performs unexpectedly, Xponential Fitness 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 Xponential Fitness will offset losses from the drop in Xponential Fitness' 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 |
| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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