Correlation Between Rewalk Robotics and Vivos Therapeutics

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

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

Diversification Opportunities for Rewalk Robotics and Vivos Therapeutics

0.85

Correlation Coefficient

Rewalk Robotics  Vivos Therapeutics

Very poor diversification

The 3 months correlation between Rewalk and Vivos is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Rewalk Robotics and Vivos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivos Therapeutics 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 Vivos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivos Therapeutics has no effect on the direction of Rewalk Robotics i.e., Rewalk Robotics and Vivos Therapeutics go up and down completely randomly.

Pair Corralation between Rewalk Robotics and Vivos Therapeutics

If you would invest  293.00  in Vivos Therapeutics on September 21, 2024 and sell it today you would earn a total of  173.00  from holding Vivos Therapeutics or generate 59.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	1.59%
Values	Daily Returns

Rewalk Robotics  vs.  Vivos Therapeutics

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.

Vivos Therapeutics

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vivos Therapeutics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Vivos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rewalk Robotics and Vivos Therapeutics

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

The idea behind Rewalk Robotics and Vivos Therapeutics 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.