Correlation Between Nielsen Holdings and Rewalk Robotics

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Can any of the company-specific risk be diversified away by investing in both Nielsen Holdings and Rewalk Robotics 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 Nielsen Holdings and Rewalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nielsen Holdings PLC and Rewalk Robotics, you can compare the effects of market volatilities on Nielsen Holdings and Rewalk Robotics 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 Nielsen Holdings with a short position of Rewalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nielsen Holdings and Rewalk Robotics.

Diversification Opportunities for Nielsen Holdings and Rewalk Robotics

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Nielsen and Rewalk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nielsen Holdings PLC and Rewalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rewalk Robotics and Nielsen Holdings 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 Nielsen Holdings PLC are associated (or correlated) with Rewalk Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rewalk Robotics has no effect on the direction of Nielsen Holdings i.e., Nielsen Holdings and Rewalk Robotics go up and down completely randomly.

Pair Corralation between Nielsen Holdings and Rewalk Robotics

If you would invest  117.00  in Rewalk Robotics on December 29, 2023 and sell it today you would lose (12.00) from holding Rewalk Robotics or give up 10.26% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Nielsen Holdings PLC  vs.  Rewalk Robotics

 Performance 
       Timeline  
Nielsen Holdings PLC 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Nielsen Holdings PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Nielsen Holdings is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
Rewalk Robotics 

Risk-Adjusted Performance

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Solid
Over the last 90 days Rewalk Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite fragile essential indicators, Rewalk Robotics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Nielsen Holdings and Rewalk Robotics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nielsen Holdings and Rewalk Robotics

The main advantage of trading using opposite Nielsen Holdings and Rewalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nielsen Holdings position performs unexpectedly, Rewalk Robotics 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 Rewalk Robotics will offset losses from the drop in Rewalk Robotics' long position.
The idea behind Nielsen Holdings PLC and Rewalk Robotics 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.
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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