Correlation Between MEDICAL FACILITIES and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both MEDICAL FACILITIES and Microbot Medical 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 MEDICAL FACILITIES and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICAL FACILITIES NEW and Microbot Medical, you can compare the effects of market volatilities on MEDICAL FACILITIES and Microbot Medical 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 MEDICAL FACILITIES with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICAL FACILITIES and Microbot Medical.
Diversification Opportunities for MEDICAL FACILITIES and Microbot Medical
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MEDICAL and Microbot is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding MEDICAL FACILITIES NEW and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW are associated (or correlated) with Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of MEDICAL FACILITIES i.e., MEDICAL FACILITIES and Microbot Medical go up and down completely randomly.
Pair Corralation between MEDICAL FACILITIES and Microbot Medical
Assuming the 90 days horizon MEDICAL FACILITIES NEW is expected to generate 0.25 times more return on investment than Microbot Medical. However, MEDICAL FACILITIES NEW is 4.08 times less risky than Microbot Medical. It trades about 0.08 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.01 per unit of risk. If you would invest 469.00 in MEDICAL FACILITIES NEW on August 30, 2024 and sell it today you would earn a total of 601.00 from holding MEDICAL FACILITIES NEW or generate 128.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDICAL FACILITIES NEW vs. Microbot Medical
Performance |
| Timeline |
| MEDICAL FACILITIES NEW |
| Microbot Medical |
MEDICAL FACILITIES and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICAL FACILITIES and Microbot Medical
The main advantage of trading using opposite MEDICAL FACILITIES and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICAL FACILITIES position performs unexpectedly, Microbot Medical 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 Microbot Medical will offset losses from the drop in Microbot Medical's long position.| MEDICAL FACILITIES vs. AM EAGLE OUTFITTERS | MEDICAL FACILITIES vs. Genco Shipping Trading | MEDICAL FACILITIES vs. Liberty Broadband | MEDICAL FACILITIES vs. Gaztransport Technigaz SA |
| Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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