Correlation Between ReWalk Robotics and Co Diagnostics

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

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

Diversification Opportunities for ReWalk Robotics and Co Diagnostics

0.05

Correlation Coefficient

ReWalk Robotics  Co Diagnostics

Significant diversification

The 3 months correlation between ReWalk and CODX is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding ReWalk Robotics and Co Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Co Diagnostics 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 Co Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Co Diagnostics has no effect on the direction of ReWalk Robotics i.e., ReWalk Robotics and Co Diagnostics go up and down completely randomly.

Pair Corralation between ReWalk Robotics and Co Diagnostics

Given the investment horizon of 90 days ReWalk Robotics is expected to under-perform the Co Diagnostics. But the stock apears to be less risky and, when comparing its historical volatility, ReWalk Robotics is 2.93 times less risky than Co Diagnostics. The stock trades about -0.08 of its potential returns per unit of risk. The Co Diagnostics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  100.00  in Co Diagnostics on September 1, 2025 and sell it today you would lose (63.00) from holding Co Diagnostics or give up 63.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ReWalk Robotics  vs.  Co Diagnostics

ReWalk Robotics

Risk-Adjusted Performance

Weakest

Over the last 90 days ReWalk Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, ReWalk Robotics is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Co Diagnostics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Co Diagnostics are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, Co Diagnostics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ReWalk Robotics and Co Diagnostics

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

The idea behind ReWalk Robotics and Co Diagnostics 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.