Correlation Between Ekso Bionics and Haemonetics

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

Diversification Opportunities for Ekso Bionics and Haemonetics

-0.48

Correlation Coefficient

Ekso Bionics  Haemonetics

Very good diversification

The 3 months correlation between Ekso and Haemonetics is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics 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 Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and Haemonetics go up and down completely randomly.

Pair Corralation between Ekso Bionics and Haemonetics

Given the investment horizon of 90 days Ekso Bionics Holdings is expected to generate 3.28 times more return on investment than Haemonetics. However, Ekso Bionics is 3.28 times more volatile than Haemonetics. It trades about 0.02 of its potential returns per unit of risk. Haemonetics is currently generating about 0.04 per unit of risk. If you would invest  163.00  in Ekso Bionics Holdings on January 25, 2024 and sell it today you would lose (45.00) from holding Ekso Bionics Holdings or give up 27.61% 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.  Haemonetics

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 May 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Haemonetics

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Haemonetics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Haemonetics is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Ekso Bionics and Haemonetics

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

The idea behind Ekso Bionics Holdings and Haemonetics 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.