Correlation Between Ekso Bionics and InspireMD

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

Diversification Opportunities for Ekso Bionics and InspireMD

-0.49

Correlation Coefficient

Ekso Bionics  InspireMD

Very good diversification

The 3 months correlation between Ekso and InspireMD is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD 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 InspireMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InspireMD has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and InspireMD go up and down completely randomly.

Pair Corralation between Ekso Bionics and InspireMD

Given the investment horizon of 90 days Ekso Bionics is expected to generate 23.66 times less return on investment than InspireMD. In addition to that, Ekso Bionics is 1.11 times more volatile than InspireMD. It trades about 0.0 of its total potential returns per unit of risk. InspireMD is currently generating about 0.07 per unit of volatility. If you would invest  92.00  in InspireMD on September 23, 2024 and sell it today you would earn a total of  208.00  from holding InspireMD or generate 226.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Ekso Bionics Holdings  vs.  InspireMD

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.

InspireMD

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in InspireMD are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, InspireMD may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Ekso Bionics and InspireMD

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

The idea behind Ekso Bionics Holdings and InspireMD 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.