Correlation Between Rewalk Robotics and Global Crossing

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

By analyzing existing cross correlation between Rewalk Robotics and Global Crossing Airlines, you can compare the effects of market volatilities on Rewalk Robotics and Global Crossing 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 Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rewalk Robotics and Global Crossing.

Diversification Opportunities for Rewalk Robotics and Global Crossing

0.02

Correlation Coefficient

Rewalk Robotics  Global Crossing

Significant diversification

The 3 months correlation between Rewalk and Global is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Rewalk Robotics and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines 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 Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Rewalk Robotics i.e., Rewalk Robotics and Global Crossing go up and down completely randomly.

Pair Corralation between Rewalk Robotics and Global Crossing

If you would invest  50.00  in Global Crossing Airlines on January 27, 2024 and sell it today you would earn a total of  4.00  from holding Global Crossing Airlines or generate 8.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Rewalk Robotics  vs.  Global Crossing Airlines

Rewalk Robotics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rewalk Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Rewalk Robotics is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Global Crossing Airlines

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Global Crossing Airlines are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Global Crossing may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Rewalk Robotics and Global Crossing

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

The idea behind Rewalk Robotics and Global Crossing Airlines 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.