Correlation Between Streamline Health and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both Streamline Health 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 Streamline Health and ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Streamline Health Solutions and ReWalk Robotics, you can compare the effects of market volatilities on Streamline Health 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 Streamline Health with a short position of ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Streamline Health and ReWalk Robotics.
Diversification Opportunities for Streamline Health and ReWalk Robotics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Streamline and ReWalk is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Streamline Health Solutions and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics and Streamline Health 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 Streamline Health Solutions 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 Streamline Health i.e., Streamline Health and ReWalk Robotics go up and down completely randomly.
Pair Corralation between Streamline Health and ReWalk Robotics
Given the investment horizon of 90 days Streamline Health Solutions is expected to generate 0.39 times more return on investment than ReWalk Robotics. However, Streamline Health Solutions is 2.58 times less risky than ReWalk Robotics. It trades about 0.14 of its potential returns per unit of risk. ReWalk Robotics is currently generating about 0.01 per unit of risk. If you would invest 366.00 in Streamline Health Solutions on October 29, 2024 and sell it today you would earn a total of 45.00 from holding Streamline Health Solutions or generate 12.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Streamline Health Solutions vs. ReWalk Robotics
Performance |
| Timeline |
| Streamline Health |
| ReWalk Robotics |
Streamline Health and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Streamline Health and ReWalk Robotics
The main advantage of trading using opposite Streamline Health and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Streamline Health 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.| Streamline Health vs. HealthStream | Streamline Health vs. National Research Corp | Streamline Health vs. Forian Inc | Streamline Health vs. HealthEquity |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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