Correlation Between Rewalk Robotics and Novacyt SA
Can any of the company-specific risk be diversified away by investing in both Rewalk Robotics and Novacyt SA 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 Novacyt SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rewalk Robotics and Novacyt SA, you can compare the effects of market volatilities on Rewalk Robotics and Novacyt SA 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 Novacyt SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rewalk Robotics and Novacyt SA.
Diversification Opportunities for Rewalk Robotics and Novacyt SA
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rewalk and Novacyt is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Rewalk Robotics and Novacyt SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novacyt SA 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 Novacyt SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novacyt SA has no effect on the direction of Rewalk Robotics i.e., Rewalk Robotics and Novacyt SA go up and down completely randomly.
Pair Corralation between Rewalk Robotics and Novacyt SA
Given the investment horizon of 90 days Rewalk Robotics is expected to generate 6.0 times less return on investment than Novacyt SA. But when comparing it to its historical volatility, Rewalk Robotics is 2.31 times less risky than Novacyt SA. It trades about 0.01 of its potential returns per unit of risk. Novacyt SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 82.00 in Novacyt SA on September 20, 2024 and sell it today you would lose (18.00) from holding Novacyt SA or give up 21.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 28.43% |
| Values | Daily Returns |
Rewalk Robotics vs. Novacyt SA
Performance |
| Timeline |
| Rewalk Robotics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Novacyt SA |
Rewalk Robotics and Novacyt SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rewalk Robotics and Novacyt SA
The main advantage of trading using opposite Rewalk Robotics and Novacyt SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rewalk Robotics position performs unexpectedly, Novacyt SA 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 Novacyt SA will offset losses from the drop in Novacyt SA's long position.| Rewalk Robotics vs. Inspira Technologies Oxy | Rewalk Robotics vs. Heart Test Laboratories | Rewalk Robotics vs. NanoVibronix | Rewalk Robotics vs. Rapid Micro Biosystems |
| Novacyt SA vs. Abbott Laboratories | Novacyt SA vs. Stryker | Novacyt SA vs. Boston Scientific Corp | Novacyt SA vs. Medtronic PLC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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