Correlation Between Laboratory and Ekso Bionics
Can any of the company-specific risk be diversified away by investing in both Laboratory 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 Laboratory and Ekso Bionics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laboratory of and Ekso Bionics Holdings, you can compare the effects of market volatilities on Laboratory 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 Laboratory with a short position of Ekso Bionics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laboratory and Ekso Bionics.
Diversification Opportunities for Laboratory and Ekso Bionics
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Laboratory and Ekso is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Laboratory of 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 Laboratory 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 Laboratory of 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 Laboratory i.e., Laboratory and Ekso Bionics go up and down completely randomly.
Pair Corralation between Laboratory and Ekso Bionics
Allowing for the 90-day total investment horizon Laboratory of is expected to generate 0.42 times more return on investment than Ekso Bionics. However, Laboratory of is 2.36 times less risky than Ekso Bionics. It trades about -0.19 of its potential returns per unit of risk. Ekso Bionics Holdings is currently generating about -0.33 per unit of risk. If you would invest 24,353 in Laboratory of on September 13, 2024 and sell it today you would lose (1,164) from holding Laboratory of or give up 4.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laboratory of vs. Ekso Bionics Holdings
Performance |
| Timeline |
| Laboratory |
| Ekso Bionics Holdings |
Laboratory and Ekso Bionics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laboratory and Ekso Bionics
The main advantage of trading using opposite Laboratory and Ekso Bionics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laboratory 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.| Laboratory vs. ASGN Inc | Laboratory vs. Kforce Inc | Laboratory vs. Kelly Services A | Laboratory vs. AMN Healthcare Services |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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