Correlation Between Rewalk Robotics and Rapid Micro

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

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

Diversification Opportunities for Rewalk Robotics and Rapid Micro

-0.2

Correlation Coefficient

Rewalk Robotics  Rapid Micro

Good diversification

The 3 months correlation between Rewalk and Rapid is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Rewalk Robotics and Rapid Micro Biosystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rapid Micro Biosystems 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 Rapid Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rapid Micro Biosystems has no effect on the direction of Rewalk Robotics i.e., Rewalk Robotics and Rapid Micro go up and down completely randomly.

Pair Corralation between Rewalk Robotics and Rapid Micro

If you would invest  89.00  in Rapid Micro Biosystems on September 30, 2024 and sell it today you would earn a total of  7.00  from holding Rapid Micro Biosystems or generate 7.87% 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.  Rapid Micro Biosystems

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.

Rapid Micro Biosystems

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Rapid Micro Biosystems are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting forward indicators, Rapid Micro may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Rewalk Robotics and Rapid Micro

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

The idea behind Rewalk Robotics and Rapid Micro Biosystems 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .