Correlation Between Ekso Bionics and Avinger

Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and Avinger 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 Avinger 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 Avinger, you can compare the effects of market volatilities on Ekso Bionics and Avinger 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 Avinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and Avinger.

Diversification Opportunities for Ekso Bionics and Avinger

0.71

Correlation Coefficient

Ekso Bionics  Avinger

Poor diversification

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

Pair Corralation between Ekso Bionics and Avinger

Given the investment horizon of 90 days Ekso Bionics Holdings is expected to under-perform the Avinger. But the stock apears to be less risky and, when comparing its historical volatility, Ekso Bionics Holdings is 1.71 times less risky than Avinger. The stock trades about -0.19 of its potential returns per unit of risk. The Avinger is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  98.00  in Avinger on September 3, 2024 and sell it today you would lose (14.00) from holding Avinger or give up 14.29% 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.  Avinger

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.

Avinger

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avinger has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Avinger is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Ekso Bionics and Avinger

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

The idea behind Ekso Bionics Holdings and Avinger 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.