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

-0.26

Correlation Coefficient

Rewalk Robotics  Cerus

Very good diversification

The 3 months correlation between Rewalk and Cerus is -0.26. 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

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

Rewalk Robotics  vs.  Cerus

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.

Cerus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cerus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cerus is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

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.

The idea behind Rewalk Robotics and Cerus 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.