Correlation Between Rewalk Robotics and Cerus
Can any of the company-specific risk be diversified away by investing in both Rewalk Robotics and Cerus 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 Cerus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rewalk Robotics and Cerus, you can compare the effects of market volatilities on Rewalk Robotics and Cerus 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 Cerus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rewalk Robotics and Cerus.
Diversification Opportunities for Rewalk Robotics and Cerus
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rewalk and Cerus is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Rewalk Robotics and Cerus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerus 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 Cerus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerus has no effect on the direction of Rewalk Robotics i.e., Rewalk Robotics and Cerus go up and down completely randomly.
Pair Corralation between Rewalk Robotics and Cerus
Given the investment horizon of 90 days Rewalk Robotics is expected to generate 0.65 times more return on investment than Cerus. However, Rewalk Robotics is 1.54 times less risky than Cerus. It trades about 0.01 of its potential returns per unit of risk. Cerus is currently generating about -0.01 per unit of risk. If you would invest 76.00 in Rewalk Robotics on September 20, 2024 and sell it today you would lose (2.00) from holding Rewalk Robotics or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 28.48% |
| Values | Daily Returns |
Rewalk Robotics vs. Cerus
Performance |
| Timeline |
| Rewalk Robotics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cerus |
Rewalk Robotics and Cerus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rewalk Robotics and Cerus
The main advantage of trading using opposite Rewalk Robotics and Cerus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rewalk Robotics position performs unexpectedly, Cerus 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 Cerus will offset losses from the drop in Cerus' long position.| Rewalk Robotics vs. Inspira Technologies Oxy | Rewalk Robotics vs. Heart Test Laboratories | Rewalk Robotics vs. NanoVibronix | Rewalk Robotics vs. Rapid Micro Biosystems |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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