Correlation Between Rewalk Robotics and Co Diagnostics

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

By analyzing existing cross correlation between Rewalk Robotics and Co Diagnostics, you can compare the effects of market volatilities on Rewalk Robotics and Co Diagnostics 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 Co Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rewalk Robotics and Co Diagnostics.

Diversification Opportunities for Rewalk Robotics and Co Diagnostics

0.0

Correlation Coefficient

Rewalk Robotics  Co Diagnostics

Pay attention - limited upside

The 3 months correlation between Rewalk and CODX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rewalk Robotics and Co Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Co Diagnostics 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 Co Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Co Diagnostics has no effect on the direction of Rewalk Robotics i.e., Rewalk Robotics and Co Diagnostics go up and down completely randomly.

Pair Corralation between Rewalk Robotics and Co Diagnostics

If you would invest  74.00  in Rewalk Robotics on September 21, 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	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Rewalk Robotics  vs.  Co Diagnostics

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.

Co Diagnostics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Co Diagnostics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Rewalk Robotics and Co Diagnostics

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

The idea behind Rewalk Robotics and Co Diagnostics 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.