Correlation Between Ekso Bionics and Spine Injury

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

Diversification Opportunities for Ekso Bionics and Spine Injury

-0.65

Correlation Coefficient

Ekso Bionics  Spine Injury

Excellent diversification

The 3 months correlation between Ekso and Spine is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and Spine Injury Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spine Injury Solutions 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 Spine Injury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spine Injury Solutions has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and Spine Injury go up and down completely randomly.

Pair Corralation between Ekso Bionics and Spine Injury

Given the investment horizon of 90 days Ekso Bionics Holdings is expected to generate 10.67 times more return on investment than Spine Injury. However, Ekso Bionics is 10.67 times more volatile than Spine Injury Solutions. It trades about 0.07 of its potential returns per unit of risk. Spine Injury Solutions is currently generating about 0.01 per unit of risk. If you would invest  61.00  in Ekso Bionics Holdings on October 25, 2024 and sell it today you would earn a total of  3.00  from holding Ekso Bionics Holdings or generate 4.92% return on investment over 90 days.

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

Ekso Bionics Holdings  vs.  Spine Injury Solutions

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 February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Spine Injury Solutions

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Spine Injury Solutions are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Spine Injury is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Ekso Bionics and Spine Injury

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

The idea behind Ekso Bionics Holdings and Spine Injury Solutions 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.