Correlation Between Ekso Bionics and Cosmos Health

Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and Cosmos Health 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 Ekso Bionics and Cosmos Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ekso Bionics Holdings and Cosmos Health, you can compare the effects of market volatilities on Ekso Bionics and Cosmos Health 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 Ekso Bionics with a short position of Cosmos Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and Cosmos Health.

Diversification Opportunities for Ekso Bionics and Cosmos Health

0.71

Correlation Coefficient

Ekso Bionics  Cosmos Health

Poor diversification

The 3 months correlation between Ekso and Cosmos is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and Cosmos Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos Health and Ekso Bionics 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 Ekso Bionics Holdings are associated (or correlated) with Cosmos Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos Health has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and Cosmos Health go up and down completely randomly.

Pair Corralation between Ekso Bionics and Cosmos Health

Given the investment horizon of 90 days Ekso Bionics Holdings is expected to under-perform the Cosmos Health. But the stock apears to be less risky and, when comparing its historical volatility, Ekso Bionics Holdings is 1.27 times less risky than Cosmos Health. The stock trades about -0.19 of its potential returns per unit of risk. The Cosmos Health is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  113.00  in Cosmos Health on September 2, 2024 and sell it today you would lose (33.00) from holding Cosmos Health or give up 29.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ekso Bionics Holdings  vs.  Cosmos Health

Ekso Bionics Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ekso Bionics Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Cosmos Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cosmos Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Ekso Bionics and Cosmos Health

The main advantage of trading using opposite Ekso Bionics and Cosmos Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekso Bionics position performs unexpectedly, Cosmos Health 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 Cosmos Health will offset losses from the drop in Cosmos Health's long position.

The idea behind Ekso Bionics Holdings and Cosmos Health 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.