Correlation Between Ekso Bionics and CareCloud
Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and CareCloud 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 CareCloud 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 CareCloud, you can compare the effects of market volatilities on Ekso Bionics and CareCloud 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 CareCloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and CareCloud.
Diversification Opportunities for Ekso Bionics and CareCloud
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekso and CareCloud is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and CareCloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareCloud 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 CareCloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareCloud has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and CareCloud go up and down completely randomly.
Pair Corralation between Ekso Bionics and CareCloud
Given the investment horizon of 90 days Ekso Bionics Holdings is expected to under-perform the CareCloud. In addition to that, Ekso Bionics is 1.01 times more volatile than CareCloud. It trades about -0.07 of its total potential returns per unit of risk. CareCloud is currently generating about -0.01 per unit of volatility. If you would invest 350.00 in CareCloud on December 4, 2024 and sell it today you would lose (44.00) from holding CareCloud or give up 12.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ekso Bionics Holdings vs. CareCloud
Performance |
Timeline |
Ekso Bionics Holdings |
CareCloud |
Ekso Bionics and CareCloud Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ekso Bionics and CareCloud
The main advantage of trading using opposite Ekso Bionics and CareCloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekso Bionics position performs unexpectedly, CareCloud 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 CareCloud will offset losses from the drop in CareCloud's long position.Ekso Bionics vs. Pro Dex | Ekso Bionics vs. Coloplast A | Ekso Bionics vs. Straumann Holding AG | Ekso Bionics vs. Nephros |
CareCloud vs. Forian Inc | CareCloud vs. HealthStream | CareCloud vs. National Research Corp | CareCloud vs. Streamline Health Solutions |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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