Correlation Between NYSE Composite and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and ReWalk Robotics 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 NYSE Composite and ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and ReWalk Robotics, you can compare the effects of market volatilities on NYSE Composite and ReWalk Robotics 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 NYSE Composite with a short position of ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and ReWalk Robotics.
Diversification Opportunities for NYSE Composite and ReWalk Robotics
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and ReWalk is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics and NYSE Composite 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 NYSE Composite are associated (or correlated) with ReWalk Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReWalk Robotics has no effect on the direction of NYSE Composite i.e., NYSE Composite and ReWalk Robotics go up and down completely randomly.
Pair Corralation between NYSE Composite and ReWalk Robotics
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.05 times more return on investment than ReWalk Robotics. However, NYSE Composite is 20.03 times less risky than ReWalk Robotics. It trades about 0.4 of its potential returns per unit of risk. ReWalk Robotics is currently generating about 0.01 per unit of risk. If you would invest 1,907,793 in NYSE Composite on October 29, 2024 and sell it today you would earn a total of 91,954 from holding NYSE Composite or generate 4.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
NYSE Composite vs. ReWalk Robotics
Performance |
| Timeline |
NYSE Composite and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
ReWalk Robotics
Pair trading matchups for ReWalk Robotics
Pair Trading with NYSE Composite and ReWalk Robotics
The main advantage of trading using opposite NYSE Composite and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, ReWalk Robotics 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 ReWalk Robotics will offset losses from the drop in ReWalk Robotics' long position.| NYSE Composite vs. Yuexiu Transport Infrastructure | NYSE Composite vs. Alternative Investment | NYSE Composite vs. Black Mammoth Metals | NYSE Composite vs. MYT Netherlands Parent |
| ReWalk Robotics vs. NorthWestern | ReWalk Robotics vs. Starwin Media Holdings | ReWalk Robotics vs. Glorywin Entertainment Group | ReWalk Robotics vs. National CineMedia |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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