Correlation Between Ekso Bionics and ResMed
Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and ResMed 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 ResMed 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 ResMed Inc, you can compare the effects of market volatilities on Ekso Bionics and ResMed 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 ResMed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and ResMed.
Diversification Opportunities for Ekso Bionics and ResMed
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ekso and ResMed is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and ResMed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ResMed Inc 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 ResMed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ResMed Inc has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and ResMed go up and down completely randomly.
Pair Corralation between Ekso Bionics and ResMed
Given the investment horizon of 90 days Ekso Bionics Holdings is expected to generate 3.02 times more return on investment than ResMed. However, Ekso Bionics is 3.02 times more volatile than ResMed Inc. It trades about 0.02 of its potential returns per unit of risk. ResMed Inc is currently generating about -0.01 per unit of risk. If you would invest 149.00 in Ekso Bionics Holdings on January 19, 2024 and sell it today you would lose (28.00) from holding Ekso Bionics Holdings or give up 18.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekso Bionics Holdings vs. ResMed Inc
Performance |
| Timeline |
| Ekso Bionics Holdings |
| ResMed Inc |
Ekso Bionics and ResMed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekso Bionics and ResMed
The main advantage of trading using opposite Ekso Bionics and ResMed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekso Bionics position performs unexpectedly, ResMed 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 ResMed will offset losses from the drop in ResMed's long position.| Ekso Bionics vs. Pro Dex | Ekso Bionics vs. Coloplast A | Ekso Bionics vs. Straumann Holding AG | Ekso Bionics vs. Nephros |
| ResMed vs. Teleflex Incorporated | ResMed vs. West Pharmaceutical Services | ResMed vs. Alcon AG | ResMed vs. ICU Medical |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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