Correlation Between ATRION and Ekso Bionics
Can any of the company-specific risk be diversified away by investing in both ATRION and Ekso Bionics 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 ATRION and Ekso Bionics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRION and Ekso Bionics Holdings, you can compare the effects of market volatilities on ATRION and Ekso Bionics 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 ATRION with a short position of Ekso Bionics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRION and Ekso Bionics.
Diversification Opportunities for ATRION and Ekso Bionics
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATRION and Ekso is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding ATRION and Ekso Bionics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekso Bionics Holdings and ATRION 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 ATRION are associated (or correlated) with Ekso Bionics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekso Bionics Holdings has no effect on the direction of ATRION i.e., ATRION and Ekso Bionics go up and down completely randomly.
Pair Corralation between ATRION and Ekso Bionics
Given the investment horizon of 90 days ATRION is expected to generate 0.97 times more return on investment than Ekso Bionics. However, ATRION is 1.03 times less risky than Ekso Bionics. It trades about -0.11 of its potential returns per unit of risk. Ekso Bionics Holdings is currently generating about -0.12 per unit of risk. If you would invest 43,610 in ATRION on January 20, 2024 and sell it today you would lose (5,040) from holding ATRION or give up 11.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ATRION vs. Ekso Bionics Holdings
Performance |
| Timeline |
| ATRION |
| Ekso Bionics Holdings |
ATRION and Ekso Bionics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRION and Ekso Bionics
The main advantage of trading using opposite ATRION and Ekso Bionics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRION position performs unexpectedly, Ekso Bionics 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 Ekso Bionics will offset losses from the drop in Ekso Bionics' long position.| ATRION vs. Agilent Technologies | ATRION vs. Illumina | ATRION vs. Waters | ATRION vs. Thermo Fisher Scientific |
| Ekso Bionics vs. Agilent Technologies | Ekso Bionics vs. Illumina | Ekso Bionics vs. Waters | Ekso Bionics vs. Thermo Fisher Scientific |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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