Correlation Between Ekso Bionics and HCA Holdings
Can any of the company-specific risk be diversified away by investing in both Ekso Bionics and HCA Holdings 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 HCA Holdings 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 HCA Holdings, you can compare the effects of market volatilities on Ekso Bionics and HCA Holdings 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 HCA Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekso Bionics and HCA Holdings.
Diversification Opportunities for Ekso Bionics and HCA Holdings
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ekso and HCA is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ekso Bionics Holdings and HCA Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCA Holdings 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 HCA Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCA Holdings has no effect on the direction of Ekso Bionics i.e., Ekso Bionics and HCA Holdings go up and down completely randomly.
Pair Corralation between Ekso Bionics and HCA Holdings
Given the investment horizon of 90 days Ekso Bionics Holdings is expected to generate 5.07 times more return on investment than HCA Holdings. However, Ekso Bionics is 5.07 times more volatile than HCA Holdings. It trades about 0.02 of its potential returns per unit of risk. HCA Holdings is currently generating about 0.04 per unit of risk. If you would invest 157.00 in Ekso Bionics Holdings on February 1, 2024 and sell it today you would lose (33.00) from holding Ekso Bionics Holdings or give up 21.02% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ekso Bionics Holdings vs. HCA Holdings
Performance |
Timeline |
Ekso Bionics Holdings |
HCA Holdings |
Ekso Bionics and HCA Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ekso Bionics and HCA Holdings
The main advantage of trading using opposite Ekso Bionics and HCA Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekso Bionics position performs unexpectedly, HCA Holdings 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 HCA Holdings will offset losses from the drop in HCA Holdings' long position.Ekso Bionics vs. Novo Integrated Sciences | Ekso Bionics vs. HCA Holdings | Ekso Bionics vs. Acadia Healthcare | Ekso Bionics vs. Pennant Group |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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