Correlation Between Bone Biologics and Rewalk Robotics

Can any of the company-specific risk be diversified away by investing in both Bone Biologics 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 Bone Biologics and Rewalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bone Biologics Corp and Rewalk Robotics, you can compare the effects of market volatilities on Bone Biologics 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 Bone Biologics with a short position of Rewalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bone Biologics and Rewalk Robotics.

Diversification Opportunities for Bone Biologics and Rewalk Robotics

-0.37

Correlation Coefficient

Bone Biologics  Rewalk Robotics

Very good diversification

The 3 months correlation between Bone and Rewalk is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bone Biologics Corp and Rewalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rewalk Robotics and Bone Biologics 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 Bone Biologics Corp 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 Bone Biologics i.e., Bone Biologics and Rewalk Robotics go up and down completely randomly.

Pair Corralation between Bone Biologics and Rewalk Robotics

If you would invest  74.00  in Rewalk Robotics on September 30, 2024 and sell it today you would earn a total of  0.00  from holding Rewalk Robotics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Bone Biologics Corp  vs.  Rewalk Robotics

Bone Biologics Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bone Biologics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Rewalk Robotics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rewalk Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Rewalk Robotics is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Bone Biologics and Rewalk Robotics

The main advantage of trading using opposite Bone Biologics and Rewalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bone Biologics 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.

The idea behind Bone Biologics Corp and Rewalk Robotics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.