Correlation Between ReWalk Robotics and Heart Test

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

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

Diversification Opportunities for ReWalk Robotics and Heart Test

0.35

Correlation Coefficient

ReWalk Robotics  Heart Test

Weak diversification

The 3 months correlation between ReWalk and Heart is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ReWalk Robotics and Heart Test Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heart Test Laboratories 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 Heart Test. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heart Test Laboratories has no effect on the direction of ReWalk Robotics i.e., ReWalk Robotics and Heart Test go up and down completely randomly.

Pair Corralation between ReWalk Robotics and Heart Test

Given the investment horizon of 90 days ReWalk Robotics is expected to generate 2.98 times more return on investment than Heart Test. However, ReWalk Robotics is 2.98 times more volatile than Heart Test Laboratories. It trades about 0.07 of its potential returns per unit of risk. Heart Test Laboratories is currently generating about -0.09 per unit of risk. If you would invest  149.00  in ReWalk Robotics on December 21, 2024 and sell it today you would earn a total of  23.00  from holding ReWalk Robotics or generate 15.44% return on investment over 90 days.

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

ReWalk Robotics  vs.  Heart Test Laboratories

ReWalk Robotics

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ReWalk Robotics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, ReWalk Robotics exhibited solid returns over the last few months and may actually be approaching a breakup point.

Heart Test Laboratories

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heart Test Laboratories has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with ReWalk Robotics and Heart Test

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

The idea behind ReWalk Robotics and Heart Test Laboratories 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.